Effective Credit Risk Committees

3 days 10-12 Jul 2017, London UK £4,295.00 + VAT* Download brochure Add to basket

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Overview

Preview

Learn how credit risk committees can be a more effective part of a bank’s governance framework in supporting achievement of business goals

Overview

This three-day course provides participants with a clear understanding of the role and responsibilities of credit risk committees and how they can become a more effective part of the overall governance framework. This is done by looking in detail at the specific activities that credit risk committees review regularly as well as the context within the committee operates, including the banks’ business strategy, group risk appetite/risk tolerances and regulatory constraints. Ways in which the operational efficiency of the committee can be improved as also covered.

Attend this course and learn:

  • What best practice credit risk management looks like
  • About governance frameworks, how they are changing and where credit risk committees fit
  • The roles and responsibilities of credit risk committees
  • To put in place appropriate terms of reference (TORs) for credit risk committees
  • How to approach reviewing and challenging papers presented to the committee
  • To run effective credit risk committee meetings
  • To monitor compliance with TOR requirements and refresh them regularly

Prior knowledge

It would be helpful if participants were familiar with the governance framework for their own organisation and had a reasonable understanding of credit risk. Prior experience of credit risk committees is not necessary.

Additional requirements
None

Who should attend

This course is designed for:

  • Chief Credit Officers
  • Senior Business Heads
  • Senior Risk Managers/Analysts
  • Senior Credit Heads
  • Senior Product Managers
  • Senior Audit Managers

Note – this course is equally applicable to staff in Wholesale, Corporate or Retail business or risk roles

Instructors

We work with a series of expert instructors, please select the course location of interest to review the credentials of who will be delivering the programme.

London
Carl Olsson

The Course Director is an experienced and qualified banker with an international career spanning over 35 years, 20 years of which were spent working in Asia and the Middle East. During that time he has worked for leading UK banks in front line business and held risk management roles at group level interfacing with business operations on a global basis.

He has extensive experience of risk and risk management at both divisional and group levels and across a wide range of business activities and customer types including retail, SME, corporate and wealth management clients. He has been involved in the establishment and management of risk and credit risk committees up to group level as well as a member of committees at various operations levels and across a wide range of business areas.

He has a long-standing interest in training and education on risk and risk management. He is a published author, Risk Management in Emerging Markets, and is principal examiner for Module 1 of the Institute of Risk Management’s Certificate in Risk Management qualification. He currently runs his own business offering risk training and consultancy services

 

Venue

London

Central London Hotel Venue

All courses are held at four or five star venues in Central London, Zone 1. We strive to provide you with a training environment of the highest quality, to ensure that the whole learning experience exceeds your expectations.

Your training venue will be confirmed by one of our course administrators approximately 3-4 weeks before the course start date.

Related Courses

Inhouse


 

Do you have five or more people interested in attending this course? Do you want to tailor it to meet your company's exact requirements? If you'd like to do either of these, we can bring this course to your company's office. You could even save up to 50% on the cost of sending delegates to a public course.

To find out more about running this course in-house:





Our Tailored Learning Offering

If you want to run this course at a location convenient to you or if you want a completely customised learning solution, we can help.

We produce learning solutions that are completely unique to your business. We'll guide you through the whole process, from the initial consultancy to evaluating the success of the full learning experience. Our learning specialists ensure you get the maximum return on your training investment.



We can offer any of our public courses delivered at your office or we can devise completely tailored solutions:


Read more about our offering or complete a call back request to speak to a learning specialist.

 

Agenda

 Day 1

The Governance Framework
  • An overview of the governance framework
  • What is risk appetite and risk tolerance
  • Risk appetite and risk tolerance setting and implementation
  • Building and maintaining an effective risk management framework
  • Where credit risk management and credit risk committees fit

Exercise: Creating an effective and appropriate risk management framework

The Operating Environment
  • An overview of the operating environment within which bank’s accept and manage credit risk
  • The factors that have influenced the current operating environment
  • The causes and consequences of the financial crisis and their on-going impact
  • Basel III and other regulatory initiatives
  • Opportunities and threats – challenger banks and shadow banking

Case Study: Sub-prime lending

Stakeholder Management
  • Who are the key internal and external stakeholders
  • What are stakeholders interests
  • Why stakeholders interests are different

Exercise: Management of conflicting interests

Day 2

Credit Risk Management
  • An overview of credit risk and best practice credit risk management
  • Customer, product and risk types
  • Key elements of the credit risk management framework
  • Credit risk committees and the credit risk management framework

Case study:  Learning lessons from banks that performed well in the financial crisis

Credit Risk Committees
  • Roles and responsibilities
  • Reporting lines, sub-committees and divisional committees
  • Membership and decision making
  • Terms of reference
  • Administration

Exercise: Best practice terms of reference

Committee Responsibilities in Detail
  • Expanded coverage of topics including

            - Credit risk appetite – setting and monitoring
            - Credit risk authorities – delegation and oversight
            - Concentration risks – setting policy and portfolio monitoring
            - Credit policy – setting, implementation and monitoring compliance
             - Models – review and approval of credit risk models

  • Explanation of best practice in relation to each topic

Case study: Examples of undue concentration risks in practice

Day 3

Committee Responsibilities in Detail (continued)
  • Expanded coverage of topics including

             - Product risks – product programme review and approvals
             - Controls –setting standards and monitoring compliance
             - Reporting – defining reporting requirements and regular monitoring
             - Audit reports – commissioning review and reviewing audit findings

  • Explanation of best practice in relation to each topic

Case study: Assessment and management of product risks

Credit Committee Operations
  • Preparing and monitoring annual plans
  • Agenda planning and preparation
  • Taking minutes
  • Post meeting management activities
  • Reporting on performance
Running a Successful Credit Risk Committee
  • What makes a successful credit risk committee meeting
  • Behaviours that ensure meetings are successful
  • Training committee members
Exercise: Mock Credit Risk Committee
  • Participate in a mock credit risk committee
  • Review lessons learned
Review and Wrap up
Review of key learning points
Why us


We have a combined experience of over 60 years providing learning solutions to the world’s major organisations and are privileged to have contributed to their success. We view our clients as partners and focus on understanding the needs of each organisation we work with to tailor learning solutions to specific requirements.

We are proud of our record of customer satisfaction. Here is why you should choose us to help you achieve your goals and accelerate your career:

  • Quality – our clients consistently rate our performance ‘excellent’ or ‘outstanding’. Our average overall score awarded to us by our clients is nine out of ten.
  • Track record – we have delivered training solutions for 95% of worlds’ top 100 banks and have trained over 250,000 professionals.
  • Knowledge – our 150 strong team of industry specialist trainers are world leading financial leaders and commentators, ensuring our knowledge base is second to none.
  • Reliability – if we promise it, we deliver it. We have delivered over 20,000 events both in person and online, using simultaneous translation to delegates from over 180 countries.
  • Recognition – we are accredited by the British Accreditation Council and the CPD Certification Service. In an independent review by Feefo we scored 96% on service and 95% on product