How to Stack Your Bank’s Portfolio with More Winners and Fewer Losers

This white paper was developed from a part of RMA's award-winning online course, The Lending Decision Process

How does an industry affect a company? One traditional approach to assessing the influence of a company's industry on its ability to succeed is Michael Porter's framework for analyzing industries and competitors. Porter, a professor at Harvard Business School, created his model to help companies build a business strategy that responds to five competitive forces. Lenders use Porter's model to identify an industry's most significant competitive challenges.

How can understanding the impact of an industry on a company help you interpret repayment risks? Read this paper to learn about:

  • Porter's five forces.
  • A sixth force that also comes into play.
  • The business cycle.
  • And the impact of the business cycle on a company. 

Download White Paper (PDF)