CSOA's standardized operational stress test is for general contractors, sub contractors and vendors. It gives lending institutions a method of measuring capability of both new and existing customers, assisting them in determining how large a loan or line the customer can service. We recommend this test to keep the surety and bank abreast of the latest conditions of each of its customers.
The companies being tested will be given one month to complete the Contractor Report Package. This is the package that CSOA uses to perform the test. The scrutiny of this package is dependent upon the test level selected by the lending institution. See Test Levels above.
The test will result in a score between 1 and 5 (5 being the highest). Along with the test results are recommendations based on their score along with how often the customer should be tested.
The object of this standardized operational stress testing is to give the lending institution cost effective insight into the companies they are lending money to. It also gives you the ability to compare these companies with the rest of the companies in your portfolio.
CSOA Lending Institution Scale:
1 - Very Risky - Below Acceptable Customer Standards with no indication of any near term change. These companies
have none of the tools in place resulting in a low test score.
2 - Risky - Below Acceptable Customer Standards at this time. These companies have some of the tools in place but scored
low in many of the tests. These areas are discussed with the client and they can be retested when they feel ready to score at
least a 3. Lending Institution should monitor closely on individual criteria test that scored below a 3.
3 - Highest Risk Customer. These companies are on the bubble. They have a lot of good qualities but need
improvement in certain areas. These companies should be tested a minimum of once a year.
4 - Average Risk Customer. These are your average companies and should be tested a minimum of once every two years.
5 - Minimum Risk Customer. These companies are the best of the best. They have all the tools in place and scored very high
in most of the tests. These companies should be tested a minimum of once every two years. Companies scoring a 5 in all
tests will receive a 5+ rating.
All test score results are to the tenth. Example test score results are: 3.2 4.5 4.8
The companies being tested will be given one month to complete the Contractor Report Package. This is the package that CSOA uses to perform the test. The scrutiny of this package is dependent upon the test level selected by the lending institution. See Test Levels above.
The test will result in a score between 1 and 5 (5 being the highest). Along with the test results are recommendations based on their score along with how often the customer should be tested.
The object of this standardized operational stress testing is to give the lending institution cost effective insight into the companies they are lending money to. It also gives you the ability to compare these companies with the rest of the companies in your portfolio.
CSOA Lending Institution Scale:
1 - Very Risky - Below Acceptable Customer Standards with no indication of any near term change. These companies
have none of the tools in place resulting in a low test score.
2 - Risky - Below Acceptable Customer Standards at this time. These companies have some of the tools in place but scored
low in many of the tests. These areas are discussed with the client and they can be retested when they feel ready to score at
least a 3. Lending Institution should monitor closely on individual criteria test that scored below a 3.
3 - Highest Risk Customer. These companies are on the bubble. They have a lot of good qualities but need
improvement in certain areas. These companies should be tested a minimum of once a year.
4 - Average Risk Customer. These are your average companies and should be tested a minimum of once every two years.
5 - Minimum Risk Customer. These companies are the best of the best. They have all the tools in place and scored very high
in most of the tests. These companies should be tested a minimum of once every two years. Companies scoring a 5 in all
tests will receive a 5+ rating.
All test score results are to the tenth. Example test score results are: 3.2 4.5 4.8
Distressed Contractor Standardized Operational Stress Testing
for Lending Institutions
for Lending Institutions
Copyright © 2006 by "CSOA" • All Rights reserved • E-Mail: Info@contractor-soa.com
Home • Standardized Stress Test • Sureties • Lending Institutions • Test Criteria • Test Levels • Final Report
Webcast • Sample Reports • About Us • Contact
Webcast • Sample Reports • About Us • Contact
Contractor Operational Stress Testing Agency
CSOA
CSOA provides Standardized Contractors Operational Stress Testing of Distressed Contractors for the Surety and Lending Institution Industries