Credit Risk Discipline Tools

Successful credit risk management relies on a strong credit culture to support and execute strategies and policies. In turn, the culture relies on some basic tools to maintain its strength.

These 14 tools offer an expedient way to test the quality of credit risk management but also serve as techniques for remediating and improving credit culture and credit risk management.

Why should you attend: 

The market and the regulatory community pay close attention to a financial organization’s credit culture because a strong credit culture is critical to the success of credit risk management. Some 14 credit discipline tools help management to implement, maintain, and ensure that credit risk and the credit culture stay on track. Join Dev Strischek as he offers a credit discipline tool checklist and explains how each of the tools works.

Key Learning Objectives:  

• Define and explain credit discipline tools’ role in diagnosing condition of credit culture
• Learn how to use each of the 14 tools to improve organization’s credit culture
• Learn how to monitor ongoing credit culture performance

Specific Areas Covered During Session: 

• 4 types of credit cultures and optimal credit cultures
• Elements of credit risk management
• Regulatory expectations for credit culture and credit risk management
• Role of credit discipline tools in building and maintaining credit culture and credit risk management
• Written credit policy
• Risk-driven credit analysis
• Uniform credit packages
• Experienced underwriting
• Informed decision-making
• Proper loan approval—minimal credit policy exceptions
• Valid, granular risk rating system
• Reliable closing and booking—minimal loan documentation exceptions
• Loan performance monitoring and reporting
• Independent loan review and audit functions
• Adequate loan loss reserve
• Professional problem asset management
• Credit lending and training

The session will be beneficial for:

• Credit managers
• Credit Risk Managers
• Credit approval officers
• Risk Managers
• Enterprise Risk Managers
• Chief Credit Officers
• Senior Lenders
• Senior Lending Officer
• Bank Director
• Chief Executive Officer
• Bank President
• Board Chairman