About the Course

Effective loan recovery and non-performing loan (NPL) management are essential for maintaining the health and profitability of financial institutions. As the volume and complexity of credit portfolios grow, institutions must adopt proactive and structured strategies to manage default risks, reduce NPL ratios, and ensure regulatory compliance.

This course offers a comprehensive, practical, and policy-aligned approach to managing loan recovery and NPLs. It combines foundational knowledge, strategic planning, operational execution, and regulatory compliance, delivered through engaging, case-based learning tailored for banking professionals.

Target Participants

This course is designed for professionals involved in credit and risk functions, including Loan Recovery Officers, Credit Analysts and Managers, Risk Management and Compliance Staff, Relationship Managers across Retail, SME, and corporate segments, Legal and Collateral Recovery Officers, as well as Portfolio Managers and Internal Auditors.

What You Will Learn

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

• Understand the causes of loan default and the lifecycle of delinquent accounts
• Establish robust monitoring systems and detect early warning signs
• Apply effective recovery strategies and borrower negotiation skills
• Interpret and comply with IFRS 9 standards for provisioning and impairment
• Implement sound forbearance and loan restructuring frameworks
• Develop and execute institutional NPL management strategies
• Align loan recovery processes with legal and collateral enforcement procedures
• Build institutional resilience through improved risk controls and governance structures

Course Duration

Classroom Based – 10 Days

Online – 14 Days

Course Outline

Credit Lifecycle and Default Triggers

• Overview of the credit lifecycle: origination to recovery
• Types and causes of loan default
• Internal and external risk factors
• Role of underwriting and due diligence gaps

  Early Warning Systems and Monitoring Tools

• Identifying early warning signals (qualitative and quantitative)
• Monitoring borrower financial health and behavior
• Watch-list management and internal escalation procedures
• Credit portfolio surveillance tools and dashboards

  Categorization and Classification of Delinquent Accounts

• Classification of loan accounts by delinquency stage
• Risk-based segmentation of borrowers
• Internal vs. regulatory classifications
• Triggers for classification changes

  Recovery Strategies and Workouts

• Strategic vs. operational recovery models
• Recovery timelines and prioritization
• Loan restructuring and refinancing options
• Cash flow-based repayment structuring
• Managing high-risk borrower categories

Forbearance Solutions and Restructuring Frameworks

• Principles and types of forbearance
• Evaluating the viability of restructuring options
• Affordability assessments and borrower analysis
• Designing forbearance programs and documentation
• Avoiding forbearance misuse and re-defaults

  Negotiation and Communication with Borrowers

• Negotiation principles in recovery
• Structuring win-win recovery solutions
• Handling difficult conversations and borrower resistance
• Ethical and reputational considerations in communication
• Documentation of agreements and follow-ups

  Legal Aspects of Loan Recovery

• Legal basis for recovery enforcement
• Litigation, debt collection, and receivership
• Collateral recovery and enforcement of guarantees
• Alternative Dispute Resolution (ADR)
• Working with external counsel and valuers

  Collateral Management and Realization

• Types and valuation of collateral
• Collateral perfection, registration, and monitoring
• Triggers for collateral enforcement
• Disposal and realization procedures
• Handling post-recovery disputes

  Digital Tools and Technologies in Loan Recovery

• Loan recovery management systems (LMS) and credit tracking tools
• Use of AI and predictive analytics in borrower risk profiling
• Automating reminders, notices, and borrower engagement
• Digital documentation and audit trails

  Strategic NPL Portfolio Management

• What constitutes an NPL portfolio
• Systemic and institutional impact of NPLs
• Portfolio segmentation and prioritization
• Role of special asset management units
• Portfolio-wide vs. account-level strategies

  Regulatory and Institutional NPL Strategy

• Key elements of an institutional NPL strategy
• Governance frameworks and decision-making
• Designing an NPL operating model
• Embedding NPL strategy into business planning
• Aligning NPL strategy with central bank and prudential guidelines

  IFRS 9 and Loan Impairment Provisions

• Overview of IFRS 9: expected credit loss model
• Staging and impairment categories
• Probability of Default (PD)
• Loss Given Default (LGD)
• Exposure at Default (EAD)
• Individual vs. collective provisioning
• Data sources and assumptions in impairment modeling

  NPL Recognition, Write-Offs, and Provisioning

• Recognizing non-performing exposures (NPE)
• Link between forbearance and NPE
• Timely provisioning and write-off procedures
• Internal policies and regulator expectations
• Impact of provisioning and write-offs on financial statements

  Reporting, Analytics, and KPI Tracking

• Internal reporting frameworks
• NPL performance indicators
• Recovery dashboards and risk analytics
• Using data for decision-making
• Reporting to senior management and regulators

  Credit Risk Governance and Institutional Controls

• Roles and responsibilities of Credit and Risk Committees
• Risk appetite and NPL tolerance levels
• Internal audit and compliance oversight in credit recovery
• Integration with enterprise risk management frameworks

  External Recovery Agencies and Outsourcing Models

• Working with third-party collection agents
• Due diligence and performance monitoring of agencies
• Risks and regulatory expectations in outsourcing recovery
• Drafting and managing recovery service-level agreements (SLAs)

  Institutional Action Planning and Policy Alignment

• Developing post-training action plans
• Reviewing loan recovery and NPL policies
• Identifying institutional gaps and improvement areas
• Staff accountability and performance monitoring

Sustainability and continuous learning frameworks

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 a certificate.

Tailor-Made Course

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