By attending this course the delegates will learn:
- How all areas of business are influenced by Credit Risk Management
- Principles of credit risk management to maintain control of account acquisition, account management and collections
- How all parts of Credit Risk management come together
- How to manage information to create a volume driven business
- How to create efficient analytics and statistical models in credit risk
- Forecasting your key credit indicators in order to save your business time and money
- The trigger points to control provisions and be pro-active
- How to find the areas where opportunities lie to generate revenue without taking unwanted risks
Organisations are increasingly looking to find the right balance in the “Risk/Reward” equation and in today’s environment using good Credit Risk Management practices to optimise profitability will help your business become more successful.
This course will assist you in thinking outside the normal parameters that most businesses follow. It covers all aspects of Credit Risk, from an application design to write-off and includes case studies and best practices.
The course is a detailed view of credit risk management that will enable you to manage your business growth while minimising the losses. By having a good grasp of the principle of credit risk management you will be able to identify the right tools to use, develop appropriate strategies to control risk and understand the financial implications of your credit risk decisions.
Methodology
The training program will be highly interactive and will include case studies describing successful application of best practices by some large organisation. These case studies will be used to highlight the important messages that are covered in the different sessions.
Who should attend?
- Risk Managers
- Credit Risk Officers
- Heads of Credit
- Product managers
- Finance managers
- Credit Analysts
- Underwriters
- Fast track new recruits
- Auditors
- Senior Lending Officers
Day 1
Registration commences at 8:30
Programme runs from 9:00 - 5:00 daily
Case Studies will play an important part of the training course. They will be used in conjunction with the appropriate sessions and will highlight the important messages covered in the course. The case studies described here are common issues faced by many banks. The results from the approaches taken will clearly show the delegates how profitability can be maximised by tackling the following areas:
- Acceptance Rates
- Collections 1
- Collections 2
- Credit Line Increases
- Scorecard
- Risk Based Pricing
- Provisions
Introduction
Participants’ expectation and general discussion about what is Credit Risk Management
The Credit Cycle and Principles of Credit Risk Management
This section deals with the process, principles and the responsibilities that underline the fundamentals of Credit risk Management. Included are the links between risk profiles/screening and collections.
- Processes
- Responsibilities
- Profiling
- Screening
Typical Credit Risk Systems Infrastructure
The systems that deliver the process are described here together with the legacy that is most common in businesses
- Systems
- Legacy systems
Target Market
The Target Market is an area that is usually associated with marketing. Credit Risk should be involved particularly with regards to who is the Target Market. The questions to ask: who and what is the profile that should be targeted and finally the basic principles to observe.
- Who
- Risk Profiles
- Principles
Day 2
Product Planning and Profitability
This section is designed to give participants an understanding of the relative importance of the different components of the profitability equation. The dynamic nature of risk recognition and the use of forecasting techniques to predict future losses are explained.
- Principles
- Profit Objectives
- Profit model
- Provisions
Account Acquisition Part 1
The account acquisition process looks at the workflow to begin with and continues with screening tools including manual underwriting. This is then complimented with the criteria through the credit policy considerations and the latest innovations.
- Typical Process
- Scorecards – development & usage
- Underwriting
- Policy rules
- Credit Line assignment
- Latest Innovations
Account Acquisition Part 2
Account (portfolio) Management part 1
Credit Risk management has an important role to play with existing customers. This includes revenue generation through line increase program (also line decrease to limit the exposure). Shadow limits and authorisation are addressed because they are correlated to losses plus the strategies one can use in dealing with the exposure management. Underpinning all the above is the why where and how Behavioural scorecard is used
- Behavioural scorecards, development, data, usage, tracking
- Credit Line Increases – objectives, strategies, common pitfalls
- Shadow Limit/Authorisation strategies
- Exposure Management Strategies
Day 3
Account (portfolio) Management Part 2
Minimising Credit losses through Collections and Recoveries
Collections are usually the most underrated tool in the armoury of Credit Risk Management, not in terms of managing the logistics, but in terms of applying the appropriate strategies. It is here that we look at the different techniques used to collect, the tools that are available, and the use of analytics in collection strategies. Working the delinquency is critical to keeping losses to a minimum, this is achieved by:
- Setting up the right collections team
- Devise and implement pro-active strategy
- Helping the business to identify tools to minimize losses
- Debt Collections Agency Management
- Loss Recognition
- Loss Forecasting
Collections/Recoveries part 2
Day 4
MIS
In a volume driven business the importance of the right MIS cannot be overstated. Without the appropriate MIS the business will always struggle to be optimal in its profitability.” If the business can’t measure it, then it can’t manage it”. This section will go into the type of MIS required and what it tells us.
- Key Performance Indicators
- Monitoring/tracking
- Scorecard MIS
- Threshold Benchmarking
Credit Bureau
With many various bureaus across the world, this session describes what the role of credit bureaus is what type of data is held and how it can be best used for underwriting and account performance.
- Role of Bureaus
- Data held
- Where the data is used
10 Best Practices
Formulating the right credit risk strategy
Strategic Questions
The 7 strategic questions that are crucial to any business. These are high level questions that the business should address to formulate the right Credit Risk strategy from a senior management level
Wrap up
Course summary and close
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Manj Blah
Manj Blah has over 30 years experience in the financial services sector and specifically over 25 years global experience in credit risk management in unsecured lending. He was European Regional Practice leader for Credit Risk Management for Visa Europe as well as MasterCard Advisors and prior to this he was Head of Risk Management for the consumer lending business and small business at Bank of Ireland. He also was Head of Risk Management for NatWest Card Services. Before NatWest Manj worked for Citibank - European Consumer Services (Group), as Business Risk Reviewer (BRR) and Senior Credit/Financial Officer. He has wide experience across Europe. Manj has extensive experience in credit risk covering all aspects from a “cradle to grave” perspective, covering MIS, analytics, strategies and credit financials. He has advised many large organisations in not only how to control credit losses but also in indentifying opportunities in revenue generation.
Courses run by this instructor
Interested in holding this course in-house? Please fill out your details and a member of our team will be in touch with more information.
4-7 Jun 2012 (Paris, France)
19-22 Nov 2012 (Paris, France)
A 4-day expert emerging market risk analysis training course designed to equip delegates with the skills to analyse and mitigate country risk. Including techniques for the analysis of financial institutions in emerging markets.
2-6 Jul 2012 (Geneva, Switzerland)
As a result of the recent banking crisis in the West, the Accord has evolved into what was called Basel II.5 and is now called Basel III. This intensive, 5-day course will discuss, in detail, the significant changes to the Accord, and how they will impact on the business model of your bank.
3-5 Jul 2012 (Prague, Czech Republic)
This innovative, 3-day course will provide delegates with up-to-date information and refreshed skills in order to efficiently and effectively manage corporate loan workouts and financial restructuring to minimise market risk and secure strong returns.
18-20 Sep 2012 (Amsterdam, Netherlands)
A 3-day intensive training course featuring the uses, benefits, and advantages of credit and political risk insurance. The course places great reliance on practical work including case studies, which will point out the importance of detail in the whole area of credit experience.
10-13 Jul 2012 (Paris, France)
11-14 Dec 2012 (Paris, France)
This unique, 4-day training workshop addresses the fundamental causes of risk and provides delegates with a simple, systematic control and management programme to achieve control.
19-22 Nov 2012 (Frankfurt, Germany)
This 4-day course reviews credit models as implemented in major financial institutions while pointing to significant improvements made in light of the financial crisis.
10-12 Dec 2012 (Paris, France)
Value-at-Risk is the accepted methodology for assessing risk worldwide. This course will give you a thorough understanding of VaR, and how it fits it with other popular methodologies for market, liquidity, credit and operational risk. Dr. Flavell will show you how to use VaR for reporting purposes and for the setting of risk appetite.
Other topics of discussion include VaR-related lessons from the economic crisis and VaR stress testing (recently introduced by the Basel Accord).
3-7 Sep 2012 (Paris, France)
The aim of this 5-day course is to teach delegates how to model and analyse corporate credit risk, how to assess structural and documentation risk and to give an overview of dealing with NPLs.
2-5 Jul 2012 (Prague, Czech Republic)
This comprehensive 4-day introductory course on credit risk management is designed to give participants the basic skills to understand the credit approval process in a new credit environment. This course has the advantage of using many real-life case studies, giving delegates the opportunity to apply their theoretical knowledge to actual deal analysis. Delegates will examine deals in detail and, under instruction from the professor, they will analyse cases from both lender and borrower perspectives.
2-4 Jul 2012 (Paris, France)
5-7 Nov 2012 (Paris, France)
The primary purpose of this intensive 3-day course is to provide an introduction to how sovereign risk can be assessed, predicted and sometimes mitigated. The programme uses a wide range of case studies of sovereign crises, from the 1990s (Asia, Argentina, Russia etc), through to the more recent crises (in parts of Western, Central and Eastern Europe, Dubai etc) to illustrate how key macro-economic, indebtedness and other indicators can be used to assess and predict
changes in sovereign credit profiles.
29-31 Aug 2012 (Paris, France)
A practical and highly interactive 3-day training course, incorporating numerous case studies, that provides delegates with a thorough understanding of the syndicated loan market, its process and potential
24-27 Sep 2012 (Prague, Czech Republic)
This interactive 4-day training course will help delegates to find the most efficient ways to control credit losses and to identify opportunities to generate new business.
15-18 Oct 2012 (Paris, France)
This 4-day program will explore ERM frameworks, identifying the weaknesses in risk management programs and focusing on strenghts. Basel II and Basel III will be presented, along with the framework they provide.
25-28 Jun 2012 (Vienna, Austria)
This programme has been designed to guide bankers through the credit process and to give practical advice on what to do if problems occur.
27-29 Aug 2012 (Vienna, Austria)
Upon completing this 3-day workshop, delegates will understand how to build a flexible analysis model to restructure existing debt.
24-27 Sep 2012 (Paris, France)
Many banks are now compliant with Basel II. What next? As a result of the Western banking crisis, there are many changes proposed to the Accord, commonly known as Basel III.
This 4-day course addresses the broader issues of risk in financial institutions and the implementation of the more advanced methods currently permitted in the Accord.
The course will discuss some of the changes that have been proposed to the Accord since the Western banking crisis of 2007-9 and other developments in risk management.
This course has now expired please email us to find out when the course will next be running.