Credit Risk Management Training Course: Navigating The Evolving Landscape Of Lending

Introduction:

Credit risk, the potential for loss due to borrowers failing to meet their obligations, is a fundamental concern for financial institutions and lenders. This comprehensive training course on Credit Risk Management equips participants with the knowledge and practical skills to navigate the evolving landscape of lending, including the rise of fintech, advancements in credit scoring, and sophisticated portfolio management techniques. Participants will learn how to assess creditworthiness, manage credit exposures, and optimize risk-return trade-offs in a dynamic environment. This course empowers individuals to make informed lending decisions, minimize potential losses, and contribute to a more stable and robust credit ecosystem.

Target Audience:

This course is designed for professionals in the financial industry and those whose work involves credit-related activities, including:

• Credit Analysts
• Loan Officers
• Portfolio Managers
• Risk Management Professionals
• Fintech Professionals
• Underwriters
• Anyone seeking to enhance their understanding of credit risk management

Course Objectives:

Upon completion of this Credit Risk Management training course, participants will be able to:

• Explain the core principles of credit risk management.
• Describe the various types of credit risk and their potential impact.
• Understand the changing dynamics of lending in the fintech era.
• Apply modern credit scoring techniques to assess borrower creditworthiness.
• Develop and implement strategies to manage credit exposures effectively.
• Utilize portfolio management tools to optimize risk-return trade-offs.
• Analyze credit data and make informed lending decisions.
• Contribute to a sound and stable lending environment.
• Minimize potential losses through proactive credit risk management.
• Adapt to the evolving landscape of credit markets and lending practices.

DURATION

5 Days

COURSE CONTENT

Module 1: Foundations of Credit Risk Management

• Defining credit risk and its importance in lending.
• The role of credit risk management in financial institutions.
• Overview of key credit risk components: probability of default (PD), loss given default (LGD), exposure at default (EAD).
• Different types of credit risk: counterparty risk, concentration risk, systemic risk.
• The evolving landscape of lending and the rise of fintech.

Module 2: Credit Risk Assessment

• Traditional credit analysis methods: financial statement analysis, ratio analysis, cash flow analysis.
• Credit scoring models: statistical models, machine learning models, scorecard development.
• Qualitative credit risk assessment: industry analysis, management evaluation, competitive analysis.
• Credit rating agencies and their role in credit risk assessment.
• Assessing creditworthiness in the fintech era: alternative data sources, digital lending platforms.

Module 3: Credit Scoring and Model Development

• Statistical foundations of credit scoring.
• Developing and validating credit scoring models.
• Discriminatory power and model performance metrics.
• Calibration and backtesting of credit scoring models.
• Ethical considerations in credit scoring and lending.

Module 4: Lending in the Fintech Era

• The impact of fintech on credit risk management.
• Digital lending platforms and their unique challenges.
• Alternative data sources and their use in credit scoring.
• Peer-to-peer lending and its associated risks.
• Regulatory considerations for fintech lending.

Module 5: Credit Risk Measurement and Modeling

• Estimating probability of default (PD) using various methods.
• Estimating loss given default (LGD) and exposure at default (EAD).
• Credit portfolio models: Merton model, CreditMetrics, KMV model.
• Stress testing credit portfolios.
• Using simulation techniques for credit risk modeling.

Module 6: Credit Risk Mitigation Strategies

• Collateralization and guarantees.
• Credit derivatives and securitization.
• Loan covenants and restrictions.
• Pricing for credit risk.
• Diversification and portfolio management.

Module 7: Credit Portfolio Management

• Credit portfolio concentration and diversification.
• Credit risk limits and exposure management.
• Active credit portfolio management strategies.
• Credit portfolio performance measurement and reporting.
• Optimizing risk-return trade-offs in credit portfolios.

Module 8: Credit Risk Reporting and Monitoring

• Developing credit risk reports for different stakeholders.
• Communicating credit risk information effectively.
• Monitoring credit portfolio performance and identifying emerging risks.
• Early warning systems and credit risk alerts.
• Regulatory reporting requirements for credit risk.

Module 9: Emerging Trends in Credit Risk Management

• The use of artificial intelligence and machine learning in credit risk management.
• Big data analytics and its applications in lending.
• Cybersecurity risks in lending and credit markets.
• The impact of regulatory changes on credit risk management.
• The future of credit risk management in a rapidly evolving financial landscape.

Training Approach

This course will be delivered by our skilled trainers who have vast knowledge and experience as expert professionals in the fields. The course is taught in English and through a mix of theory, practical activities, group discussion and case studies. Course manuals and additional training materials will be provided to the participants upon completion of the training.

Tailor-Made Course

This course can also be tailor-made to meet organization requirement. For further inquiries, please contact us on: Email: info@skillsforafrica.org, training@skillsforafrica.org  Tel: +254 702 249 449

Training Venue

The training will be held at our Skills for Africa Training Institute Training Centre. We also offer training for a group at requested location all over the world. The course fee covers the course tuition, training materials, two break refreshments, and buffet lunch.

Visa application, travel expenses, airport transfers, dinners, accommodation, insurance, and other personal expenses are catered by the participant

Certification

Participants will be issued with Skills for Africa Training Institute certificate upon completion of this course.

Airport Pickup and Accommodation

Airport pickup and accommodation is arranged upon request. For booking contact our Training Coordinator through Email: info@skillsforafrica.org, training@skillsforafrica.org  Tel: +254 702 249 449

Terms of Payment: Unless otherwise agreed between the two parties’ payment of the course fee should be done 5 working days before commencement of the training.