Credit Risk Management: Principles and Practices, Tools and Techniques

About the Course:

This course focuses on identifying, assessing, and managing the risk of credit losses in financial institutions. It covers essential principles, strategies, and regulatory frameworks for effective credit risk management. The book delves into tools and techniques used to evaluate creditworthiness, mitigate potential losses, and maintain a balanced risk-return profile. It provides insights into credit risk models, risk assessment methodologies, portfolio management, and the role of technology in managing credit risk.

Course Objective:

• Focuses the organization-everyone on the same page
• Reduces organizational conflict and confusion-priorities
• Minimizes the need for rigid controls
• Supports commitment to the organizational vision and mission
• Adds to the organization’s bottom line and enhances shareholder value
• In order to achieve the advantages of a strong credit culture, there must be strong credit management. Achieving both means:
• Employing a set of diagnostic credit discipline tools to identify your existing culture and deciding on whether to maintain it or move on to a stronger culture
• Implementing the policies, processes, and procedures to implement your desired culture
• Managing the supporting infrastructure of credit administration, credit policy, loan documentation, loan booking, etc.
• The linkage between Effective Credit Risk Management and a strong Credit Culture
• Types of credit cultures and methods for identifying organization’s existing credit culture
• Determining which credit culture best supports your organization’s risk appetite and risk tolerance
• Tools for identifying, measuring, and managing portfolio transactional, intrinsic, and concentration risks inherent in loan portfolios
• Examples of effective credit risk management practices and processes

Who is the Target Audience?

• Credit Analysts
• Credit Managers
• Loan review officers
• Work-out officers
• Commercial Lenders
• Credit Risk Managers
• Chief Credit Officers
• Senior Lenders
• Senior Lending Officer
• Bank Director
• Chief Executive Officer
• President
• Board Chairman

Basic Knowledge:

• Accounting and finance background