Risk-based Lending And Credit Decisioning Models Training Course

Introduction

In today's competitive financial landscape, accurate credit assessment is crucial. This Risk-Based Lending and Credit Decisioning Models Training Course provides a comprehensive understanding of how to evaluate creditworthiness using sophisticated techniques. You'll learn to move beyond traditional methods and incorporate risk-adjusted pricing and behavioral scoring to make informed lending decisions. This course equips you with the skills to optimize loan portfolios, minimize risk, and maximize profitability. Our credit risk training course provides the expertise needed to navigate the complexities of modern lending practices and effectively implement risk-based strategies.

This Risk-Based Lending and Credit Decisioning Models training course delves into the intricacies of credit risk assessment, emphasizing the importance of risk-adjusted pricing and behavioral scoring. You'll explore how to accurately price loans based on borrower risk profiles and predict future credit behavior using advanced scoring models. You will gain practical knowledge to develop, validate, and implement credit scoring systems, enhance portfolio management, and comply with regulatory requirements. Whether you're a loan officer, credit analyst, or risk manager, this course will empower you to make sound credit decisions and drive your organization's success.

Target Audience:

• Loan Officers
• Credit Analysts
• Risk Managers
• Portfolio Managers
• Underwriters
• Relationship Managers
• Bank Examiners

Course Objectives:

• Understand risk-based lending principles.
• Apply risk-adjusted pricing.
• Utilize credit scoring models.
• Implement behavioral scoring.
• Evaluate credit data.
• Validate credit models.
• Manage loan portfolios.
• Ensure regulatory compliance.

Duration

5 Days

Course content

Module 1: Introduction to Risk-Based Lending

• Understanding risk-based lending principles.
• Defining risk-based lending and its importance.
• Comparing traditional lending vs. risk-based lending.
• Identifying the benefits of risk-based lending.
• Understanding the components of a credit decision.

Module 2: Risk-Adjusted Pricing

• Applying risk-adjusted pricing.
• Understanding the concept of risk-adjusted pricing.
• Identifying the factors that influence credit risk.
• Calculating the cost of credit.
• Determining appropriate interest rates and loan terms.

Module 3: Credit Scoring Models

• Utilizing credit scoring models.
• Understanding the purpose of credit scoring models.
• Exploring different types of credit scoring models.
• Evaluating the strengths and weaknesses of various models.
• Selecting the appropriate model for different lending scenarios.

Module 4: Behavioral Scoring

• Implementing behavioral scoring.
• Understanding the principles of behavioral scoring.
• Identifying key behavioral variables.
• Developing behavioral scoring models.
• Using behavioral scores for credit management.

Module 5: Credit Data Evaluation

• Evaluating credit data.
• Identifying sources of credit data.
• Analyzing credit reports.
• Assessing the quality and reliability of credit data.
• Understanding the limitations of credit data.

Module 6: Credit Model Validation

• Validating credit models.
• Understanding the importance of model validation.
• Establishing a validation framework.
• Performing statistical tests to assess model performance.
• Documenting and reporting validation results.

Module 7: Loan Portfolio Management

• Managing loan portfolios.
• Understanding the principles of loan portfolio management.
• Measuring portfolio risk.
• Diversifying loan portfolios.
• Implementing strategies for optimizing portfolio performance.

Module 8: Regulatory Compliance

• Ensuring regulatory compliance.
• Understanding regulations related to credit risk and lending.
• Adhering to fair lending laws.
• Implementing compliance controls.
• Keeping up with regulatory changes.

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 7 working days before commencement of the training.