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 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 a 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.

Linkage between an 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