Overview

In financial lending, unexpected outcomes usually turn out negative for financial institutions. Low efficiency and high default rates are the major risks in lending. Financial Institutions need to make sure that right lending decisions are made using practical tools that minimise risk exposure and maximise profitability. A disciplined credit management approach is therefore, required to promote consistency and thoroughness in assessing and managing credit and the development of healthy credit portfolios.

Participants go through an in-depth examination of the techniques and management structures used to assess and to control credit applications including credit portfolio and risk management, collateral management, analysis of business risk factors, debt structuring, credit exposure management, managing distressed debts and sound credit granting process.

Areas covered

• The 5Cs of Credit and how they are captured in a credit paper
• Qualitative and quantitative data points.
• Macro-economic conditions – inflation, foreign currency, interest rates, growth rates, etc.
• Firm’s competitive landscape and market position
• Competitive advantages and cost position – how does the firm create value?
• Management structure, the Board and corporate governance
• Operating, capital and corporate finance strategies
• Client perspective – profitability, liquidity, long-term stability, gearing.
• Revenues and earnings – sources, sustainability, growth outlook, main risk factors.
• Interpretation of financial statements
• Understanding non-financial factors affecting credit – reputation, experience, alignment
• Collateral Management practices – role and limitations.