About the Course

Given the increasing complexity of the financial landscape and the stringent regulatory environment, it is imperative for credit risk professionals to stay updated on best practices and industry standards. This course aims to bridge the gap between theoretical knowledge and practical application, enabling participants to enhance their decision-making abilities and contribute significantly to their organization’s risk mitigation efforts.

By focusing on key areas such as regulatory compliance, credit analysis, reporting, and portfolio management, the program provides a comprehensive overview of the credit risk management lifecycle. Participants will understand the factors influencing credit risk, learn to assess creditworthiness accurately and develop effective strategies for managing credit portfolios.

Target Participants

The course is particularly tailored for professionals working in credit risk roles, such as credit risk analysts, credit officers, financial analysts, compliance officers and portfolio managers.

What You Will Learn

By the end of this course the participants will be able to:

• Demonstrate a comprehensive understanding of credit risk management principles, frameworks, and industry best practices
• Apply regulatory requirements effectively to credit risk processes and procedures
• Conduct in-depth credit analysis and evaluation of credit proposals, incorporating financial statement analysis, credit scoring models, and industry-specific risk factors
• Prepare clear, concise, and informative credit reports tailored to different audiences, including senior management
• Develop and implement effective repayment scheduling and monitoring systems to minimize credit losses
• Effectively communicate credit risk information to stakeholders at all levels of the organization

Course Duration

Classroom Based – 5 Days

Online – 7 Days

Course Outline

Introduction to Credit Risk Management

• Overview of credit risk and its impact on financial institutions
• Credit risk measurement and management tools
• Credit risk culture and governance

Credit Risk Modelling Techniques

• Advanced credit scoring models
• Probability of default (PD) models
• Loss given default (LGD) models
• Exposure at default (EAD) models
• Stress testing and scenario analysis

Regulatory Environment and Compliance

• Base l III and IV requirements
• IFRS 9 and its implications for credit risk
• Regulatory reporting and disclosures
• Internal ratings-based (IRB) approaches

Credit Proposal Evaluation and Analysis

• Credit analysis techniques and financial statement analysis
• Credit scoring models and risk assessment
• Industry-specific credit risk considerations

Credit Report Writing and Presentation

• Effective communication of credit information
• Report structure and content
• Presentation skills for credit reports

Credit Risk Mitigation Strategies

• Credit risk transfer instruments (CDS, CDOs)
• Collateral management
• Credit risk insurance
• Credit derivatives

Repayment Scheduling and Monitoring

• Repayment structure and calculation
• Early warning indicators and collection strategies
• Loan loss provisioning and recovery

Collateral Management and Valuation

• Types of collateral and valuation methods
• Collateral risk assessment and monitoring
• Secured lending and enforcement

Credit Portfolio Management

• Portfolio risk management techniques
• Diversification and concentration risk
• Credit portfolio optimization
• Performance measurement and reporting

Emerging Trends in Credit Risk Management

• Climate risk and its impact on credit risk
• ESG (Environmental, Social, and Governance) considerations
• Fintech and its influence on credit risk management
• Cyber risk and operational risk integration

Developing an Effective Credit Risk Management Framework

• Components of a robust credit risk management framework
• Risk appetite and tolerance
• Governance and oversight
• Continuous improvement and innovation

Training Approach

This course is delivered by our seasoned trainers who have vast experience as expert professionals in their respective fields of practice. The course is taught through a mix of practical activities, presentations, group works and case studies. Training notes and additional reference materials are provided to the participants.

Certification

Upon successful completion of this course, participants will be issued be issued a certificate accredited by the National Industrial Training Authority (NITA).

Tailor-Made Course

We can also do this as a tailor-made course to meet organization-wide needs.