"> FUNDAMENTALS OF CREDIT RISK MANAGEMENT FOR CREDIT PROVIDERS | Africa Risk Institute

FUNDAMENTALS OF CREDIT RISK MANAGEMENT FOR CREDIT PROVIDERS

  • by ari
  • Course level: Intermediate

About Course

Providers of credit across the world are invariably faced with the probability that some of the borrowers will default. Whereas the causes of credit default are varied and complex, it is generally accepted that by building the capacity of their teams to assess the creditworthiness of potential borrowers in the ever-busy business environments, providers of credit are able to significantly minimize credit defaults and, in the process, maximize profits, increase market share, minimize risk, and reduce the financial provisions that must be made against bad and doubtful debt.

Description

In 2016, Financial Sector Deepening (FSD Africa) commissioned a study to understand the state of credit risk management within the financial services industry in Africa using Kenya, Ghana and D.R. Congo as case studies. The final report made various observations including the existence of a large training need across the three countries sampled across all staff levels (entry/junior, middle management/ intermediate, executive/senior level). It was further observed that there is a generalized lack of organized training for entry-level staff which is the level that requires training to help them lay a firm foundation on the fundamentals of Financial Services and Risk Management. Moreover, relationship officers and managers are recruited from a variety of backgrounds and do not necessarily have relevant skills and experiences which exposes financial institutions to possible fraud or poor asset quality that as a result of poor credit management skills.Below is a timeline of activities that FSD Africa undertook through a multi-stakeholder consultative process.

 

This process (see summary report) led to the development of the Fundamentals of Credit Risk Management (FCRM) course. Africa Risk Institute (ARI) was involved from start to finish in the entire process and dedicated staff and resources in the development FCRM. ARI is an accredited training provider for the FCRM Course.

Objectives of the Course

The FCRM training will impart participants with practical Credit Risk Management Skills to enable them to effectively assess the financial health of organizations using financial and non-financial information. Participants will gain a detailed understanding of the end-to-end credit risk management process and how to ‘tell the story of a business’ using various aspects of information from financial statements, including ratio and cash flow analysis, among others.Financial Institutions are rolling out the FCRM to their analysts, relationship officers/managers, and wider teams with a view to: –

  1. Improve loan origination and overall quality of their loan book.
  2. Manage the portfolio at risk and reduce non-performing loans (NPLs).
  3. Standardize training ensuring benchmarking within the organization and externally.
  4. Maintain a healthy ratio of certified staff transferable across regional operations.
  5. Assess competence through an examination provided by an external third party.
  6. Comply with regulatory emphasis on skills development

Certification

Upon completion of the course, participants will receive certificates of completion from Africa Risk Institute. Those who sit for the International Certification will receive Certificates of competence from the Chartered Banker Institute (CBI).

International Certification!!

For those interested in the International Certification, Exam Fees will be charged as follows: –

Registration fee (only payable if you’re sitting CISI exams for the first time) – GBP 16.00

Exam fee – GBP 150.00


NB: The Chartered Banker (CBI), The Chartered Institute of Securities and Investment (CISI) and The Chartered Insurance Institute (CII) are part of the Chartered Alliance where they work collaboratively. Through this partnership, CISI are responsible for administering the FCRM examinations across Africa.


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What Will I Learn?

  • Understand the end-to-end credit process
  • Appreciate the significance of Credit granting to the economy
  • Understand the various types of Credit facilities
  • Gain practical tips on the theory and application of the techniques of credit risk to different scenarios
  • Learn how to structure facilities from practical cases
  • Network with other Credit professionals in a fun environment
  • Benchmark your Credit Risk Analysis knowledge

Topics for this course

100h

An Overview of Credit and Credit Risk

Introduction to Lending

The Principles of Good Lending

Credit Products and Services

Securities for Lending

Managing Credit Risk

Credit Information Sharing

Regulations and Ethics

Microfinance

Personal Lending

Corporate Lending

Understanding Islamic Banking

Dealing with Non- Performing Loans (NPLs)

About the instructors

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Kefa has over 20 years senior-level experience in banking, finance and risk management. He holds a diploma in Risk Management in Finance and Banking (RMIFB) from Sweden and is an Associate of the Chartered Institute of Bankers. He has a unique resume that combines practical experience in Banking and Financial advisory. In Banking, he held various relevant senior level positions including credit analyst, internal auditor, branch manager, relationship Manager, remedial and recovery manager, and Head of Credit Risk Management. He also served on various management and board Committees within the Banking industry related to Credit Risk Management, among others. In advisory; he has developed a reputation as an accomplished trainer and consultant who has carried out various assignments in Risk Management in Zimbabwe, Eswatini, Botswana, Zambia, Kenya, Uganda, Rwanda, Tanzania, Ethiopia, and Sierra Leone, among others. His training assignments have been in diverse areas of Banking including Trade Finance, Credit risk management, enterprise risk management, and operational risk management, among
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Patricia is an experienced Banker, certified professional coach and business advisor who has extensive experience in local and international banking with key competencies in strategy, marketing, customer relationship management, business and leadership development. Patricia has a passion for "success through others" and has a track record in building successful teams by focusing on employee engagement, culture building and leadership. She is a seasoned banker, with over 30 years’ experience in corporate banking, retail banking, SME Banking, public sector, banking operations, asset and liability management. Patricia has successfully led large teams in deposit taking initiatives, business development, facility negotiations, product innovations, business acquisition and relationship management. With her vast experience in the Banking industry, Patricia brings on board practical skills and expertise in credit and risk management.
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Paul is a highly capable all-round credit professional with special skills in business turnaround. He brings on board over twenty-five years’ experience in the financial services industry. His specialization in evaluating and managing risk from SMEs to high-value complex relationships across a wide spectrum of companies provides him with unique insights to understanding the key drivers of business success and failure. He has worked with businesses in Kenya and across the region including Kenya, Tanzania, Uganda, Ghana and Zambia covering a multiplicity of sectors and achieved positive outcomes to assure business sustainability for the long term. Paul has a background in Economics from University of Nairobi and an MBA in Entrepreneurship from ESAMI/Maastrich Business School and is an Associate of the Chartered Institute of Bankers, London.
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$950.00

Material Includes

  • This qualification is based on existing Chartered Banker Institute learning content and has been amended to reflect the operating environment, legislation, regulation, opportunities and challenges of lending and associated operations in East Africa. This makes this training uniquely relevant to the region’s credit risk environment.
  • The course materials have been prepared specifically to meet the needs of the participants and include textual coverage of important topics in credit analysis and of case studies based on actual loan applications.

Requirements

  • The course is offered on a flexible model that ensures that participants take as little time from their office as possible.
  • Using our blended delivery model, participants will be enrolled onto our e-learning platform where they will be guided by a tutor for 2 weeks before attending a 4-day Face-to-Face training. Thereafter, participants will undertake an examination offered by the Chartered Banker Institute.
  • The face-to-face workshops will be interactive and will involve short lectures, group discussions, case studies and especially a lot of interaction between the instructor and the participants and among the participants themselves. The cases used in the workshop are actual loan applications in a real lending environment.

Target Audience

  • All personnel involved in the credit process within a commercial environment
  • New entrants into banking, microfinance, SACCOs, Investment groups, etc
  • Staff in lending or credit roles
  • Graduate trainees, credit analysts
  • Relationship officers/managers
  • Branch Managers
  • Anyone with interest in the subject matter