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.

Topics covered include:

• 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

These sessions will provide a legal and compliance perspective of a financial institutions responsibilities in gathering such documents during the account opening process.