Identify, Maintain, Improve Your Credit Culture

A strong credit culture mitigates credit risk, the probability that a borrower is unable or unwilling to repay your loan in full, on time, and as agreed.  Identifying, evaluating, underwriting, and extending credit to a creditworthy borrower requires teamwork, and a strong credit culture builds and maintains that team.  The optimal culture is led by management that prioritizes credit quality and says so regularly.  Lenders and credit approvers work together; there are few credit policy and loan documentation exceptions.  Risk appetite and risk tolerance are in balance as the organization executes its credit strategy.  Credit policy, processes, and procedures are in sync.

Topics covered in this session

• Describing and explaining the key elements needed to build, implement, and maintain this strong, optimal culture.
• Showing how to employ those key elements to strengthen an organization’s credit culture through examples, tools, and techniques
• Describing and explaining how to employ 14 credit discipline tools to diagnose and improve your organization’s credit culture
• Credit risk and its relationship to the other enterprise risks
• Interplay between effective credit risk management and strong credit culture
• Definition and basic elements of credit culture
• Basic elements of credit culture
• Framework for establishing and maintaining credit culture
• Risk appetite vs. risk tolerance
• Fourteen credit discipline tools inherent in strong credit cultures