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Sample Partial Preview
Company Name
Corporate Credit Policy
Corporate Credit Policy
TABLE OF CONTENTS
Article I.
Purpose
..................................................................................................................1
Article II.
Organizational Credit Management
Roles and Responsibilities............................1
Article III.
Credit Review and
Approval...................................................................................1
Article IV.
Credit
Enhancement...............................................................................................2
Article V.
Credit Concentration
Limits....................................................................................3
Article VI.
Credit Risk
Measurement.......................................................................................3
Corporate Credit Policy. Purpose
Section 1.01
The Purpose of the Credit Policy is to
ensure that _________ Corporation:
(a) Assesses risks associated with
customers, business segments and transactions to ensure business is conducted
with entities that have acceptable financial risk profiles.
(b) Protects its investment in accounts
receivable.
(c) Optimizes risk reward relationships and
minimizes the risk of potential losses from default by customers and partners.
Section 1.02
It is the intent that this Credit Policy
support and operate in conjunction with all other policies and strategies of
_________Corporation.
Acle II. Organizational Management
Roles and Responsibilities
Section 2.01
EnCana Corporation’s Audit Committee is
responsible for authorizing the Policy and delegating authority to the Chief
Financial Officer for implementation and administration of the Policy.
Section 2.02
The Chief Financial Officer is also
responsible for reviewing the Policy on at least an annual basis, and has the
authority to approve credit limits within the concentration limits as outlined
in Article VI of the Policy and delegating credit limit approvals to Financial
Risk Management.
Section 2.03
The leadership of the Operating Divisions
and Corporate Groups of ________ are responsible for ensuring that appropriate
operating systems and interfaces are in place to ensure the accuracy, timeliness
and integrity of reported information to Financial Risk Management required for
credit monitoring and to ensure that their employees are aware of and abide by
the Policy.
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