Credit risk management is a vital aspect that directly affects the stability of banks and financial institutions. In the current business environment, which is characterized by complexity and increasing risks, the need for effective systems to manage these risks has never been more urgent. The British Academy for Training and Development offers a course in Credit Risk Management in Banks to provide participants with deep knowledge and advanced skills necessary to understand the challenges and practices associated with assessing and managing credit risks.

The course is designed to offer a comprehensive framework on how to handle credit risks related to customers and banking transactions. Participants will learn methods for analyzing customers' financial reputation, credit assessment techniques, continuous monitoring tools, as well as risk mitigation strategies in different banking environments. The course also aims to empower participants to develop effective internal policies to reduce risks, thereby contributing to improved overall performance in banks and enhancing their ability to face economic and financial challenges.

Who Should Attend?

• Risk managers in banks and financial institutions.
• Credit analysts in banks.
• Credit management and financial marketing employees.
• Individuals wishing to develop their skills in credit risk management.

Knowledge and Benefits:

After completing the program, participants will be able to master the following:

• Enable participants to understand the concepts of credit risk management and its applications in banks.
• Enhance participants' ability to analyze and assess the credit risks associated with customers and transactions.
• Introduce participants to the tools and techniques used in monitoring and managing credit risks within financial institutions.
• Teach participants how to develop strategies and techniques to mitigate credit risks and ensure the sustainability of financial institutions.
• Provide participants with a deep understanding of the economic and financial impacts that may arise from credit risks and how to address them effectively.
• Enhance participants' ability to make informed decisions when dealing with credit risks in changing business environments.

• Definition of Credit Risk

  • The concept of credit risk and its importance in banking.
  • Classification of credit risks according to international standards.
  • Risks resulting from customer defaults and their impacts.

• The Role of Credit Risk Management in Banks

  • Protecting financial institutions from credit risks.
  • The impact of credit risks on liquidity and profitability.
  • Enhancing the institution's ability to adapt to economic challenges.

• Foundations of Credit Risk Management

  • Financial analysis tools and their effect on risk assessment.
  • Diversification as a strategy to reduce risks.
  • Setting appropriate credit limits for customers.

• International Standards for Credit Risk Management

  • The regulatory framework of Basel II and Basel III agreements.
  • Basel Committee on Banking Supervision standards and their impact on management.
  • Guiding banks toward financial system stability.

• Role of Supervisory and Audit Bodies

  • Internal and external audits and their role in ensuring compliance.
  • The role of central banks in overseeing credit risks.
  • Compliance with legal and regulatory requirements.

• Global Impact on Credit Risk Management

  • Global economic impacts on financial stability.
  • Financial crises and their effect on credit policies.
  • Risks associated with changes in monetary policies.

• Customer Financial Data Analysis

  • Methods of analyzing financial statements to assess creditworthiness.
  • Using credit ratios to determine repayment ability.
  • Calculating the ability to meet financial obligations.

• Risk Assessment Models

  • Credit rating models and risk analysis tools.
  • Altman Z-score model and risk forecasting tools.
  • Risk analysis using statistical predictions.

• Creditworthiness Assessment of Clients

  • Analyzing the credit history and financial background of clients.
  • Estimating future risks based on available data.
  • Using technology in credit risk analysis.

• Diversification Strategies in Credit Portfolios

  • Distributing risks across customer categories and sectors.
  • Reducing risks by focusing on lower-risk sectors.
  • Diversifying geography and products to ensure stability.

• Using Collateral as a Risk Mitigation Tool

  • Types of tangible and intangible collateral.
  • Assessing collateral and accurately determining its value.
  • Impact of collateral on credit terms.

• Developing Internal Policies to Reduce Risks

  • Establishing strict standards for granting credit.
  • Strategies for assessing and retaining new clients.
  • Developing approval processes and ongoing reviews.

• Key Performance Indicators (KPIs) for Credit Risk Measurement

  • Loan-to-deposit ratio as a risk measurement tool.
  • Non-performing loans ratio and how to reduce it.
  • Credit quality index and its impact on bank stability.

• Financial Analysis Techniques

  • Using financial ratios to evaluate credit performance.
  • Analyzing future cash flows to determine risks.
  • Comprehensive assessment of debt repayment capacity.

• Credit Risk Reporting

  • Preparing monthly and annual credit reports.
  • Tools for monitoring credit performance and risk analysis.
  • Using Big Data in credit risk reporting.

• Developing an Effective Internal Monitoring System

  • Creating early warning systems for risk detection.
  • Developing monitoring tools for credit performance.
  • Continuous review of credit approval decisions.

• Using Technology in Risk Monitoring

  • Electronic risk management systems and their impact on performance.
  • AI and machine learning applications in risk forecasting.
  • Analyzing big data to identify potential risks.

• Developing Risk Response Strategies

  • Making early decisions to reduce potential risks.
  • Restructuring debt and organizing repayment terms.
  • Strengthening relationships with delinquent clients to reduce risks.

• Impact of Credit Risks on Loan Issuance

  • Determining loan amounts based on risk analysis.
  • Allocating credit terms based on credit evaluation.
  • Impact of risks on setting repayment periods.

• Informed Decision-Making in Investment Operations

  • Investing in low-risk financial instruments.
  • Allocating resources according to risk analysis.
  • Handling high-risk clients with caution.

• Determining Appropriate Credit Limits

  • Setting maximum credit limits based on credit history.
  • Determining credit limits based on repayment capacity.
  • Adjusting credit limits in response to economic changes.

• Impact of Credit Risks During Economic Crises

  • Impact of credit risks on liquidity and profitability.
  • Measures to mitigate risks during crisis periods.
  • Strategies for maintaining bank stability.

• Adjusting Credit Policies in Changing Work Environments

  • Adapting to economic changes and market fluctuations.
  • Updating credit policies in line with economic variables.
  • Allocating additional resources to mitigate credit risks.

• Sustainability Strategies for Banks Facing Risks

  • Directing development strategies away from high-risk areas.
  • Reducing risks during economic downturns.
  • Developing sustainable credit policies.

• AI and Machine Learning in Credit Risk Forecasting

  • AI applications in credit risk analysis.
  • Machine learning models for analyzing customer credit behavior.
  • Risk forecasting techniques using big data.

• Innovation in Credit Tools to Reduce Risks

  • Modern creditworthiness assessment tools.
  • Innovative digital platforms for credit risk analysis.
  • Using blockchain technology to improve credit operations.

• Applying Big Data in Credit Risk Management

  • Using big data to measure credit risks accurately.
  • Enhancing data processing operations to reduce risks.
  • Improving forecasting accuracy and credit decision-making with big data.

• Raising Awareness of Credit Risks Among Employees

  • Training employees to analyze and assess risks.
  • Promoting a culture of continuous credit risk evaluation.
  • Building awareness of the importance of risk management in banking stability.

• Developing Skills in Risk Management Teams

  • Training teams on implementing risk management policies.
  • Enhancing coordination between departments for effectiveness.
  • Using modern training techniques to develop necessary skills.

• Importance of Coordination Between Different Departments in Risk Management

  • Collaboration between executive and administrative departments to reduce risks.
  • Improving communication among teams to avoid risks.
  • Ensuring integration between risk strategies and daily banking operations.