Credit Risk Management

This introduction to credit risk management is designed to show participants how to plan, organize, and execute credit risk management by emphasizing tools and techniques. This course will help you strengthen your ability to align credit risk with your institution’s overall risk appetite and culture while applying practical tools to enhance credit discipline. You will gain actionable insight into identifying, managing, and monitoring transaction, intrinsic, and concentration risks, along with effectively using risk ratings, products, and underwriting practices. You’ll also build a deeper understanding of end-to-end credit policy from analysis and approval through monitoring and administration and walk away with strategies to improve portfolio quality, manage asset performance, and drive profitability.

Topics covered in this course

• The role of credit risk among the enterprise risks
• Identifying the bank’s credit culture and align it with the bank’s desired risk appetite and tolerance
• • Credit discipline tools
  • Desired corporate priority, credit risk strategy, degree of risk management exercised, credit policy implemented
• Identifying, managing, and monitoring transaction risk, intrinsic risk, and concentration risk in the bank’s credit exposure
• • Role of risk ratings in transaction risk management
  • Role of products and services in intrinsic risk management
  • Role of single entity, geography, industry, and underwriting in concentration risk management
• Employing credit policy to support the bank’s credit policy and credit strategy
• • Components of credit policy

• • Credit information, analysis, and underwriting
  • Decision, approval, closing, booking, funding, and monitoring

• • Credit administration

• • Documentation, files, risk ratings, loan review, and audit
  • Approval authorities, pricing discipline
  • Monitoring asset quality, covenant compliance
• Portfolio management
• • Credit strategies to maintain portfolio quality and profitability

*This course does NOT qualify, nor meet the National Standard for NASBA accreditation.