In today's dynamic global economy, effective Credit Risk Management and Negotiation Skills are indispensable for financial institutions, businesses, and professionals seeking to safeguard assets, optimize lending portfolios, and ensure sustainable financial health. The ability to accurately assess creditworthiness, identify potential defaults, and then skillfully negotiate terms and resolutions is paramount for mitigating financial losses, enhancing profitability, and maintaining robust client relationships. This comprehensive training course is meticulously designed to equip participants with both the analytical frameworks for identifying, measuring, monitoring, and controlling credit risks, as well as the advanced negotiation techniques necessary to secure favorable outcomes in challenging financial scenarios, from loan structuring to debt recovery. Without mastering both Credit Risk Management and Negotiation Skills, organizations risk significant financial exposure, inefficient resource allocation, and a diminished capacity to navigate complex credit landscapes, underscoring the vital need for specialized expertise in this critical domain.

Duration: 5 Days

Target Audience

• Credit Analysts and Officers
• Loan Managers and Portfolio Managers
• Risk Managers and Compliance Officers
• Financial Planners and Advisors
• Business Development Managers
• Sales Professionals in financial services
• Debt Collection Specialists
• Legal Professionals involved in financial contracts
• Entrepreneurs and Business Owners
• Anyone involved in granting credit or managing financial agreements

Objectives

• Understand the fundamental concepts of credit risk and its various categories.
• Learn to apply systematic approaches to credit assessment and analysis.
• Acquire skills in identifying, measuring, monitoring, and controlling credit exposures.
• Comprehend techniques for structuring credit facilities to mitigate risk.
• Explore strategies for effective negotiation in financial contexts.
• Understand the importance of building rapport and trust in negotiation.
• Gain insights into managing non-performing loans and debt recovery.
• Develop a practical understanding of regulatory frameworks for credit risk.

Course Content

Module 1: Introduction to Credit Risk Management

• Definition of credit risk and its importance in financial institutions.
• Types of credit risk: default risk, concentration risk, country risk, counterparty risk.
• The credit lifecycle: origination, underwriting, monitoring, collection.
• Regulatory environment and frameworks (e.g., Basel Accords principles).
• Impact of credit risk on profitability and stability.

Module 2: Credit Assessment and Analysis Fundamentals

• Financial statement analysis for credit assessment.
• Ratio analysis: liquidity, solvency, profitability, efficiency.
• Cash flow analysis and projections.
• Qualitative factors in credit assessment: management, industry, business environment.
• Credit scoring models and their application.

Module 3: Measuring and Quantifying Credit Risk

• Probability of Default (PD).
• Loss Given Default (LGD).
• Exposure at Default (EAD).
• Expected Loss (EL) and Unexpected Loss (UL).
• Credit value at risk (CVaR) concepts.

Module 4: Credit Risk Mitigation Techniques

• Collateral management and valuation.
• Guarantees, letters of credit, and credit derivatives.
• Loan covenants and their role in risk control.
• Diversification of credit portfolios.
• Risk-based pricing strategies.

Module 5: Principles of Effective Negotiation

• Understanding the negotiation process and stages.
• Key negotiation strategies and tactics (e.g., distributive vs. integrative).
• Preparing for negotiation: objectives, BATNA (Best Alternative to a Negotiated Agreement).
• Active listening, empathy, and effective communication.
• Building rapport and managing emotions in negotiation.

Module 6: Negotiation Skills in Financial Contexts

• Negotiating loan terms and conditions.
• Restructuring distressed loans and repayment plans.
• Debt recovery and collection negotiation.
• Handling difficult conversations with defaulting clients.
• Cross-cultural negotiation considerations in finance.

Module 7: Monitoring and Control of Credit Portfolios

• Early warning indicators for deteriorating credit quality.
• Portfolio review and stress testing.
• Loan classification and provisioning.
• Watchlist management and problem loan identification.
• Credit risk reporting to management and regulators.

Module 8: Advanced Topics and Case Studies in Credit Risk

• Sovereign risk and country risk assessment.
• Counterparty risk in derivatives and financial markets.
• Securitization and credit transfer mechanisms.
• Impact of economic cycles on credit risk.
• Practical case studies and role-playing exercises in negotiation.

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.