Advanced Credit Risk Analysis, Loan Portfolio
Management and Non-Performing Loans (NPLs)
Recovery

Day One: Advanced Credit Risk Analysis and Borrower Assessment
Module 1: Principles of Credit Risk Management
• Understanding credit risk and its impact on banking performance.
• The credit risk management lifecycle.
• Types of credit facilities and lending arrangements.
• Credit risk appetite, policies and lending standards.
• The relationship between credit risk, profitability and capital adequacy.
• Common causes of loan defaults and credit losses.

Module 2: Financial Statement Analysis for Credit Decisions
• Analysing balance sheets, income statements and cash-flow statements.
• Assessing profitability, liquidity, leverage and solvency.
• Interpreting key financial ratios for credit assessment.
• Evaluating working capital and operating cash flows.
• Identifying financial weaknesses and signs of financial distress.
• Assessing the quality and reliability of borrower financial information.

Module 3: Borrower Creditworthiness and Repayment Capacity
• Evaluating borrower character, capacity, capital, collateral and conditions.
• Assessing repayment capacity and debt-servicing ability.
• Debt Service Coverage Ratio (DSCR) and interest coverage analysis.
• Evaluating business models, industry conditions and market risks.
• Assessing management quality and corporate governance.
• Conducting borrower due diligence and independent credit verification.

Module 4: Credit Scoring and Risk Rating
• Principles of credit scoring and borrower classification.
• Internal credit rating systems and risk grades.
• Quantitative and qualitative credit assessment methods.
• Probability of Default (PD), Loss Given Default (LGD) and Exposure at Default (EAD).
• Credit approval limits and risk-based lending decisions.
• Limitations of credit scoring models and professional judgement.

Day Two: Credit Structuring, Collateral Management and Loan Approval
Module 1: Credit Structuring and Lending Decisions
• Structuring credit facilities according to borrower needs and risk profiles.
• Determining loan amounts, repayment periods and instalment schedules.
• Assessing affordability and repayment capacity.
• Matching loan terms to cash-flow cycles.
• Pricing credit according to risk and institutional policies.
• Setting appropriate covenants and conditions precedent.

Module 2: Collateral Valuation and Credit Risk Mitigation
• Types of collateral, guarantees and security arrangements.
• Assessing the adequacy and enforceability of collateral.
• Property, equipment, inventory and receivables as security.
• Collateral valuation, insurance and periodic revaluation.
• Loan-to-Value (LTV) ratios and collateral coverage.
• Legal documentation, security perfection and collateral monitoring.
• Limitations of collateral as a substitute for repayment capacity.

Module 3: Credit Approval and Governance
• Credit application assessment and documentation requirements.
• Credit approval authorities and delegated lending limits.
• Separation of duties and management of conflicts of interest.
• Independent credit review and challenge processes.
• Credit committee responsibilities and decision-making.
• Compliance with internal credit policies and applicable regulations.

Module 4: Credit Risk Mitigation and Lending Controls
• Credit guarantees and other risk-sharing arrangements.
• Loan covenants and borrower reporting obligations.
• Managing concentration risk and connected exposures.
• Preventing fraud, misrepresentation and deliberate borrower default.
• Documentation controls and credit file management.
• Post-disbursement conditions and ongoing compliance monitoring.

Day Three: Loan Portfolio Management and Early Warning Systems
Module 1: Effective Loan Portfolio Management
• Principles of loan portfolio management.
• Portfolio diversification and concentration risk.
• Managing exposures across sectors, industries and borrower categories.
• Monitoring loan growth, profitability and portfolio quality.
• Assessing portfolio performance using key credit indicators.
• Balancing lending growth with acceptable risk levels.

Module 2: Credit Portfolio Monitoring and Risk Measurement
• Portfolio-at-risk measures and delinquency analysis.
• Monitoring overdue loans and repayment patterns.
• Tracking default rates, recovery rates and credit losses.
• Analysing portfolio migration between risk categories.
• Evaluating Probability of Default (PD), Loss Given Default (LGD) and Exposure at Default (EAD).
• Understanding expected credit losses and their relationship to IFRS 9 impairment requirements.
• Using portfolio reports and dashboards for credit decisions.

Module 3: Early Warning Systems and Identification of Distressed Loans
• Developing early warning indicators for potential defaults.
• Identifying deterioration in borrower financial performance.
• Monitoring delayed payments, covenant breaches and declining cash flows.
• Recognising industry-specific and macroeconomic warning signs.
• Using credit bureau information and borrower monitoring reports.
• Establishing escalation procedures for high-risk accounts.

Module 4: Credit Risk Stress Testing and Scenario Analysis
• Assessing the impact of economic downturns on loan portfolios.
• Evaluating interest rate increases and exchange rate movements.
• Analysing sectoral concentration and correlated borrower risks.
• Estimating potential credit losses under adverse scenarios.
• Assessing the impact of rising defaults on profitability and capital.
• Developing portfolio risk mitigation strategies.

Day Four: Non-Performing Loans Management, Restructuring and Recovery
Module 1: Understanding Non-Performing Loans
• Definition and classification of non-performing loans under applicable regulations.
• Causes and consequences of rising NPLs.
• Identifying distressed borrowers and deteriorating credit exposures.
• NPL ratios and other asset quality indicators.
• Assessing the financial impact of NPLs on bank profitability and capital.
• Loan impairment, provisioning and write-off considerations.

Module 2: Loan Collections and Arrears Management
• Developing effective arrears management policies.
• Designing early-stage, medium-stage and late-stage collections strategies.
• Prioritising overdue accounts according to risk and recoverability.
• Customer engagement and structured repayment arrangements.
• Collections performance monitoring and staff accountability.
• Managing delinquent accounts while maintaining fair customer treatment.
• Establishing effective escalation and recovery workflows.

Module 3: Loan Restructuring and Workout Strategies
• Assessing borrower viability and willingness to repay.
• Rescheduling, refinancing and restructuring distressed loans.
• Negotiating revised repayment plans.
• Debt consolidation and settlement options.
• Evaluating the financial feasibility of restructuring proposals.
• Monitoring restructured loans and identifying repeat defaults.
• Determining when restructuring is inappropriate and alternative recovery action is required.

Module 4: Debt Recovery, Legal Remedies and Collateral Realisation
• Negotiation and voluntary repayment arrangements.
• Debt recovery strategies and settlement agreements.
• Enforcing guarantees and realising collateral in accordance with applicable law.
• Legal proceedings and insolvency considerations.
• Managing external collection agencies and legal service providers.
• Recovery cost analysis and prioritisation of recovery actions.
• Ethical collections practices and compliance with customer protection requirements.

Day Five: Advanced NPL Recovery Strategies, Credit Governance and Performance Improvement
Module 1: Advanced NPL Resolution and Recovery Management
• Segmenting NPL portfolios by age, value, risk and recovery potential.
• Prioritising accounts based on expected recovery and cost.
• Developing institution-wide NPL reduction strategies.
• Managing large exposures and complex corporate restructurings.
• Evaluating distressed debt sales and portfolio disposal options.
• Working with insolvency practitioners and external recovery specialists where appropriate.
• Monitoring recovery outcomes and preventing repeat defaults.

Module 2: Credit Risk Governance and Internal Controls
• Strengthening credit policies and lending procedures.
• Roles of the board, credit committees and senior management.
• Independent credit risk review and internal audit.
• Managing conflicts of interest and credit approval exceptions.
• Identifying fraud, insider lending and weaknesses in credit controls.
• Regulatory compliance and supervisory expectations.
• Strengthening accountability across the credit lifecycle.

Module 3: Technology, Data Analytics and Automation in Credit Risk
• Using data analytics to identify high-risk borrowers.
• Automated credit scoring and decision-support systems.
• Artificial intelligence applications in credit assessment and monitoring.
• Predictive analytics for default forecasting and early intervention.
• Digital collections platforms and recovery dashboards.
• Data quality, model validation, fairness and responsible use of automated credit decisions.

Module 4: Developing a Credit Risk and NPL Reduction Strategy
• Establishing credit risk objectives and measurable performance targets.
• Developing a time-bound NPL reduction action plan.
• Improving loan approval quality and portfolio monitoring.
• Strengthening collections, restructuring and recovery capabilities.
• Defining key performance indicators (KPIs) and key risk indicators (KRIs).
• Monitoring implementation progress and reporting outcomes to senior management.