Corporate Governance
Structuring and managing the organization’s short- and long-term debt and equity, while ensuring appropriate levels and sources of corporate liquidity.
Level 1. Demonstrates introductory understanding, directing people to the appropriate source for further information.
BEHAVIORS
- Explains the basic concepts of corporate finance.
- Describes the basic attributes of debt versus equity and the uses of each.
- Describes the impact of credit rating agencies on the organization’s ability to obtain financing.
QUESTIONS
- Describe a time when you had the opportunity to read and interpret credit rating scores.
Probing Questions
* What was the circumstance?
* Who did you go to for assistance?
* What was your conclusion after reading the scores?
* What was the result?
Level 2. Applies the competency in common situations that present limited difficulties, working with a moderate level of guidance.
BEHAVIORS
- Identifies near-term debt maturities that need to be repaid or refinanced.
- Tracks available corporate liquidity position.
- Describes the impact of external economic factors on the organization’s capital structure and financing alternatives.
QUESTIONS
- Describe a time when you had to track an organization's liquidity status.
Probing Questions
* What was the circumstance?
* How did you go about it?
* What resources did you use?
* What was the result?
- Describe a time when you identified a requirement to refinance debt.
Probing Questions
* What was the circumstance?
* How did you identify the requirement?
* What resources did you use?
* What action did you recommend?
Level 3. Applies the competency in the full range of typical situations, requiring guidance in only the most complex or new situations.
BEHAVIORS
- Manages the debt compliance process, performing sensitivity analyses.
- Develops management reports to support corporate financial decision making.
- Ensures debt and equity payments are made punctually, informing the relevant stakeholders of status.
- Makes recommendations on appropriate financing alternatives by monitoring external economic factors.
QUESTIONS
- Describe a time when you were required to manage debt compliance.
Probing Questions
* What were your role and responsibilities?
* What was the circumstance?
* How did you go about it?
* What resources did you use?
- Describe a time when you had to make a recommendation on financing alternatives.
Probing Questions
* What were your role and responsibilities?
* What was the circumstance?
* How did you identify the requirement?
* What factors did you consider?
Level 4. Applies the competency in new or complex situations and advises others.
BEHAVIORS
- Develops corporate finance strategies based on a business plan, debt maturity, strategic initiative, and risk profile.
- Makes funding recommendations on a cross-functional team for global funding of CAPEX and operations.
- Collects pertinent data, preparing presentations for rating agencies.
- Stays abreast of changes in tax law and structuring the company’s affairs lawfully.
QUESTIONS
- Describe a time when you were required to develop a corporate financing strategy.
Probing Questions
* What were your role and responsibilities?
* What was the circumstance?
* What resources did you use?
* How did you come up with your recommendations?
- Describe a time when you had to make a presentation to a credit rating agency.
Probing Questions
* What were your role and responsibilities?
* What was the circumstance?
* How did you determine what information to present?
* How did you structure your presentation?
Level 5. Develops new approaches and methods in the area. Is recognized as an expert within the organization.
BEHAVIORS
- Manages relationships with key corporate finance stakeholders (rating agencies, banks, other investors).
- Advises corporate management on optimal capital structure.
- Oversees the development and implementation of corporate finance policies across the organization globally.
- Develops the organization’s corporate finance expertise by coaching and mentoring others.
QUESTIONS
- Describe a time when you had to coach non-financial managers on corporate financial policy.
Probing Questions
* What were your role and responsibilities?
* What was the circumstance?
* How did you determine what information to present?
* What was the coaching process?
- Describe a time when you had to make changes to the organization's financing plan based on external changes.
Probing Questions
* What were your role and responsibilities?
* What was the circumstance?
* How did you find out about the external changes?
* What other information did you take into account?