Lending remains the main source of income for most banks, microfinance institutions and SACCOs, and also the main source of losses. Economic slowdowns, currency movements, commodity price falls and weak governance among borrowers can turn a performing book into a problem one within a few quarters. Institutions that manage credit risk well do so through consistent discipline at every step rather than through heroic recovery efforts after the damage is done.

The Management of Credit Risk & Lending Training Course follows the entire credit lifecycle. It begins with credit policy, risk appetite and the roles of the lending, risk and approval functions. Participants then learn to appraise borrowers: reading financial statements, projecting cash flows, testing repayment capacity under stress, assessing management quality and valuing collateral and guarantees. The next sessions cover structuring facilities, covenants, documentation, pricing for risk and the use of internal ratings and scorecards. After disbursement, the course turns to monitoring, early warning indicators, watch lists, restructuring, IFRS 9 staging and provisioning, collections and recovery strategies, and reporting to management and the board.

Learning is built on case files and spreadsheet templates. Each participant completes a full credit appraisal, writes a recommendation and presents it to a mock credit committee for challenge.

By the end of the course, participants will be able to:

• Apply a credit policy and risk appetite statement to lending decisions.
• Analyse borrower financial statements and project cash flows under base and stress scenarios.
• Evaluate management quality, industry conditions and character using structured criteria.
• Value and perfect collateral and judge its real contribution to loss mitigation.
• Structure facilities, covenants and pricing that reflect the risk taken.
• Assign internal risk ratings and prepare a credit committee submission.
• Monitor accounts, identify early warning signs and manage restructuring and recovery.
• Explain IFRS 9 staging and expected credit loss in the context of loan portfolio management.

This course is designed for people who originate, approve, monitor or oversee loans, including:

• Loan officers and relationship managers
• Credit analysts and credit committee members
• Credit risk and portfolio managers
• Collections and recovery officers
• SACCO, microfinance and development bank lending staff
• Agricultural and SME finance specialists
• Internal auditors and bank examiners
• Finance managers of companies that borrow from banks

Participants leave with:

• A structured credit appraisal template covering financials, cash flow, security and risks.
• A cash flow stress testing spreadsheet.
• A checklist of covenants and conditions precedent for common facility types.
• An early warning indicator list and an account watch process.
• A completed credit memorandum for a case borrower.
• A recovery strategy outline for a troubled account.

The programme is case-driven and built around the decisions lenders make, through:

• Credit files from corporate, SME, agricultural and retail borrowers
• Spreadsheet templates for analysis, stress tests and provisioning
• A mock credit committee that challenges each participant's recommendation
• Short facilitator briefings on policy, law and accounting standards
• Peer discussion of arrears and recovery situations from participants' portfolios

Participants who attend all five days and complete the credit appraisal exercise are awarded a CPD-accredited Certificate of Completion issued by Vision Reach Global Consultancy.