Credit Risk Professional Masterclass

5 Day Training

Dates: 24 – 28 February 2025
Locations: Grayston Ridge Office Park, Sandton
Platform: Available In-Class / Online

Price: Available on Request

Course Introduction

Prospen Africa’s Credit Risk Professional Masterclass is a comprehensive 5-day program designed to provide participants with a deep understanding of credit risk management.

Course Objectives

Understanding Credit Risk: Demonstrate a comprehensive understanding of credit risk concepts, including regulatory frameworks and credit risk models.
Risk Assessment Techniques: Apply diverse credit risk assessment techniques to evaluate borrower creditworthiness and make informed lending decisions.
Portfolio Analysis: Analyse credit risk within portfolio contexts and formulate strategies for diversification to optimize risk exposure.
Stress Testing and Resilience: Evaluate portfolio resilience by conducting stress tests, identifying vulnerabilities, and proposing risk mitigation measures.
Regulatory Compliance: Apply knowledge of Basel III regulations to ensure capital adequacy and regulatory compliance within financial institutions.

Who should attend?

Credit Risk Professionals: Analysts, managers, and professionals in credit risk assessment and management roles.
Risk Management Practitioners: Risk officers and managers responsible for risk management within financial institutions.
Banking and Lending Personnel: Bankers, lending officers, and loan underwriters looking to improve credit assessment skills.
Compliance and Regulatory Experts: Compliance officers and regulatory personnel aiming to align with regulatory requirements, including Basel III.
Aspiring Credit Risk Professionals: Recent graduates and career changers aspiring to enter the credit risk management field.

Training Methodology

Our diverse instructional approaches ensure effective learning:

– Lectures & Presentations: Engage with expert-driven, stimulating content.
– Course Material: Access well-crafted supporting resources.
– Group Work: Collaborate on discussions and case studies for practical insights.
– Workshops & Role-Play: Participate in immersive, scenario-based activities.
– Practical Application: Focus on applying theoretical knowledge in real situations.
– Post-Training Support: Receive extensive support after training for skill implementation.

Training Outline

Day 1: Introduction to Credit Risk Management

Credit Risk Fundamentals: Understanding the importance of credit risk in the financial industry.
Role of Credit Risk Professionals: Responsibilities and key functions within organizations.
Regulatory Framework: Overview of international and regional regulations.
Credit Risk Models and Measurement: Various models and measurement techniques.
Credit Scoring and Rating Agencies: Role and understanding of credit scores and rating agencies.
Case Study: Analysing credit reports to assess borrower creditworthiness.

Day 2: Credit Risk Analysis and Assessment

Financial Statement Analysis: Detailed analysis of financial statements.
Credit Risk Assessment Techniques: Qualitative and quantitative approaches.
Credit Risk Exposure: Calculating and managing exposure.
Loan Structuring and Documentation: Best practices for structuring loans and reviewing documentation.
Collateral Valuation: Valuation of collateral assets for risk mitigation.
Case Study: Assessing credit risk for loan approval decisions.

Day 3: Credit Risk Mitigation Strategies

Credit Risk Mitigation Techniques: Techniques such as credit enhancements, guarantees, and covenants.
Credit Derivatives: Introduction to credit derivatives.
Credit Insurance: Use of credit insurance as a mitigation tool.
Credit Risk Policy and Procedures: Developing policies and establishing procedures.
Legal Aspects: Legal considerations in credit risk management.
Case Study: Designing risk mitigation strategies for different scenarios.

Day 4: Portfolio Management and Stress Testing

Portfolio Credit Risk: Understanding credit risk within a portfolio context.
Portfolio Diversification: Strategies for minimizing exposure.
Stress Testing: Conducting stress tests to assess portfolio resilience.
Basel III and Capital Adequacy: Overview of regulations and implications for banks.
Credit Risk Management in Banking: Best practices and challenges.
Case Study: Stress testing a credit portfolio.

Day 5: Emerging Trends

Fintech and Credit Risk: Impact of fintech innovations on credit risk management.
Climate Change and Credit Risk: Integration of climate change considerations.
Emerging Trends: Latest developments and trends.
Review of Key Concepts: Comprehensive review of key topics covered.