This one-day course introduces participants to a strategic framework for portfolio credit risk management focusing on the integration of priorities, culture, risk strategy, and risk controls. Risk management consists of two components – 1) the types and magnitude of risks assumed (Quantity of Risk), and 2) how the institution manages the risk (Quality of Risk Management). This aspect is emphasized throughout the day.
Course Objectives
By the end of the course, participants will be able to:
- Utilize a structured framework to model and manage the financial institution’s loan portfolio
- Identify and understand the components of Strategic Loan Portfolio Management:
- Establishing priorities
- Selecting a culture
- Determining risk strategy
- Implementing Risk Controls
- Identify and understand the importance of the components of the Quantity of Risk:
- Transaction risk
- Intrinsic risk
- Concentration risk
- Assess the institution’s Quality of Risk Management that works in tandem with the Quantity of Risk assumed.
- Assess common lender mistakes in managing portfolio credit risk
Suggested Prerequisites: None
Program Level:Intermediate
Advance Preparation: None
Computers and Financial Calculators: N/A
Recommended CPE Credits: 7