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January/February 2010

Annual Risk Management & Fraud Prevention Issue
Vol. 8 No. 1
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Detecting & Derailing Fraud - When considering your organization’s approach to detecting, eliminating and preventing fraud, trust your intuition and suspicions, and take a hard look into the facts surrounding any gut feeling you have. Put practical procedures in place, then monitor the environment in high-risk areas. When it comes to fraud, it’s not a matter of “if” it will happen, but rather, of how well you are prepared when it does.
The True Face of Dilution (Part 1 of 3) - Field examiners may spend a considerable time scrubbing a borrower’s trade accounts receivable (A/R). Often the resulting ineligibles proposed are met with the following question “Isn’t this all covered by dilution?” Knowing the answer to the question is critical to ensuring that the borrowing base formula adequately protects an asset-based lender.
Tomorrow Will Look A Lot Like Today - As we begin a new year, Stevan Buxbaum urges secured lenders to take advantage of the great opportunities that exist in tumultuous times. But, he advises, such opportunities will only pan out if approached with discipline, diligence and perhaps most importantly, the realism that was lacking in the days of irrational exuberance.
Balancing Opportunity and Risk - This year promises to be among the most challenging in memory for asset-based lenders. More than at any other time, lenders will face competing pressures to open up the spigot to meet pent up market demand for financing, while simultaneously confronting internal and external pressures to limit exposure and risk. Adding to the impetus is the recent White House initiative to leverage banks into aiding small businesses through increased lending.
‘Old School’ Underwriting & Risk Management - There’s nothing like a fresh start. With the economy just starting to level out and a rebound expected to start in 2010, now is as good time a time as any to get back to the basics. 1st West’s Jerry Oldham tells us why the four Cs of Credit still matter.


At TD Bank, An Industry Veteran Finds the Right Fit - For Barry Kastner it’s always been a matter of trusting his instincts and striking the right balance. And it’s no surprise that the 33-year veteran of Congress Financial and its successor, Wachovia Capital Finance, assimilated the qualities of strong credit discipline and a customer-centric approach to find himself in the top ABL spot at America’s ‘most convenient bank.’



When the Floodgates Burst - Business Continuity planning is an integral and important part of running any type of company. The process is not complicated, however it is time consuming and requires proper project management. It is a good idea to get outside help with the project design and management, unless your company possesses both the expertise and time required to create a robust and effective BRP.


For the Love of Factoring –— Industry Consultant Discusses Business Climate - With a career at a variety of leading factoring organizations, Darla Auchinachie knows her way around the industry. Now as a consultant, she aids those companies that benefit from her insight — and for that reason ABF Journal asked Darla for her thoughts on the industry now that the economy seems better poised for a recovery.


Do Quick-and-Easy Section 363 Sales Always Yield the Best Return on Collateral? - Because legal fees and other costs can stack up during a lengthy Chapter 11 reorganization, some asset-based lenders might welcome the trend toward §363 sales, reasoning that quicker sales ultimately will translate into maximum return on collateral. In reality, however, §363 is anything but a one-size-fits-all solution.


FTC Red Flag Rules — Protection Against Identity Theft - In October 2009, the Federal Trade Commission, at the request of Congress, delayed the enforcement of the so-called “Red Flag” rules geared to address the risk of identity theft until June 1, 2010. That date is important to financial institutions as failure to comply opens the door to legal aggravation including civil monetary fines and lawsuits.


FinalCut: CFA Reports Significant Growth Among Asset-Based Lenders - ABF Journal illustrator, Jerry Gonzalez’ visual interpretation of a top-ranked news story according to our visitors.


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