Today’s world is a risky place. Terrorists stalk the streets of London and Paris. Identity
thieves prowl the internet. Sometimes you just want to crawl into the closet with a good book
and stay there.
Instead of hiding from risk, our Risk Management issue explores the dangers that lurk in the financial world and provides solutions. Underwriters are the unsung heroes of the lending business. They
evaluate the risk involved in each deal and only present the safest loans to the committee; there is
always some risk involved. Our regular contributor Lisa Miller interviewed three underwriters from
major lenders to reveal the process.
In our cover story, Dan Kane and Michael McGuire, CEO and COO, respectively, of Tiger Group,
offer advice for ABL lenders and explain the importance of getting a solid appraisal before closing
a deal — then lowering the risk by reappraising over the course of the loan ensure the collateral is
holding its value.
Ann Eberhardt, an expert on financial fraud at Galvin/Salmonese, presents five mini case studies of
financial statement fraud, some by well-known companies like Logitech. These stories are a wake-up
call alerting us to the insidious way fraud can hide beneath the surface. They also serve as a warning
to fraud perpetuators, who are usually caught in the end. Even Bernie Madoff tripped up eventually.
Money laundering — concealing the origins of illegally obtained money — is a crime that costs
businesses billions of dollars in fines from the U.S. government. Sven Stumbauer of AlixPartners
explains how companies can protect themselves from illegal activities undertaken by affiliates and
create a business culture that follows anti-money laundering guidelines.
Moving away from risk, our executive profile focuses on David Marks, a 30-year Wells Fargo veteran
who became head of Wells Fargo Commercial Finance in May. Marks has been crisscrossing the
country to meet his team members and share his commitment to customer service with them.
In our departments, Jeffrey Wurst writes about a Florida decision that allows a lender to assign a
loan to a state governmental agency to a factor in Legal Lines. Cedar Croft’s Patrick Walsh offers
a template for a communications protocol in Turnaround Corner. In Specialty Lending, Charles
Perer of Super G Capital explains how financial companies need to brand themselves the same way
shampoos and candy bars do to stand out in a crowded marketplace.
Our upcoming ABL Borrowers issue will give lenders an opportunity to learn what the other half of
the lending partnership thinks. Have a wonderful summer, and we’ll see you in September.
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