First Policy Insurance Brokers: Credit Risk Assessment for Corporate Clients

Om Prakash joined First Policy Insurance Brokers as a Management Trainee in the trade credit function. His primary ownership was financial risk assessment and credit decision support for both corporate clients and their buyers.

On a day-to-day basis, he collected and reviewed financial statements, analyzed the company's business model, and examined key metrics including leverage, liquidity, interest coverage, profitability, and cash flow generation. He tracked these metrics across multiple years to identify whether businesses were strengthening or deteriorating, rather than assessing a single point in time.

Based on that analysis, he prepared structured credit assessment reports that highlighted key risks, strengths, and red flags. These reports were used by senior team members to determine credit limits and structure insurance coverage. In several cases, his analysis identified deteriorating leverage, weakening cash flows, or stretched liquidity, which led the team to take a more conservative approach on credit exposure before extending coverage.

Beyond individual assessments, Om Prakash also monitored the existing portfolio for changes in financial performance. When warning signs emerged, the team could reassess exposure quickly rather than reacting after a problem had already developed. That proactive monitoring supported better portfolio risk management across the book.