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Shine the Spotlight on Credit Management: Credit Analysis Reaily Is Cool
At a recent gathering of corporate credit managers I mentioned that I was finalizing the third edition of a book that I have authored titled Credit Management: Principles and Practices. One of the credit managers asked me if the third edition would change much from the second edition. I responded by asking the credit managers at the meeting whether or not their profession had changed much? We laughed; then we had a rollicking good time discussing the vast changes in both the book and the profession.
The Wall Street Journal had an excellent article entitled "Sign of the Times: Credit Analysis Is Cool." The title of the article really does convey a change in attitude concerning the attractiveness of becoming a credit manager. These days, not all accountants and attorneys have a good reputation. I am a former credit manager who has spent the last 20 years working with young people who are now, more than I can ever remember, becoming quite interested in credit management as a career.
A few years ago, it seemed like 75 percent of the credit managers at meetings were over the age of 50. Discussions too often focused upon downsizing credit operations or retirement plans. Young people were not being turned on to the many skills essential to credit management. In order to recruit and retain the best young professionals, credit-related topics should be presented by better integrating the use of technology. This is one of the key changes in the third edition of Credit Management: Principles and Practices. A concerted focus that integrates the tools essential to credit management through the use of the Internet is now a major focus in each chapter of the book.
Does Credit Management Really Have It All?
I challenge you to identify one business-related occupation that requires skills in as many cross-functional areas as that of a credit manager. Accounting, finance, marketing, management, information systems, psychology, law and communications are each essential to sound credit management. A more considerable challenge is for credit managers to optimize skills in each of these areas.
A group of corporate credit managers has validated a list of tasks that are essential to credit management....