Participants review the two necessary conditions for business success - sufficient debt capacity to service interest-bearing debt and sufficient operating cash flow to meet debt service. They examine the four quadrants in a risk grid that designate the possible combinations of these two necessary conditions for business success. They identify the significance of each quadrant in establishing a borrower's risk profile and signaling satisfactory or disturbing financial performance on the part of the borrower. Further, Participants apply the risk grid concepts and methodology in tracking a borrower's movements among and within risk grid quadrants over annual and interim time periods. In doing so, they identify the underlying reasons that determine risk grid movements from period to period. Finally, they assess trends and developments, particularly in interim periods, in anticipating likely future loan performance.