Principles and Practices of Credit Risk Administration
Course Description
This course addresses overall management of the loan portfolio. Practical and conceptual issues are covered in regard to the risks present in loan portfolios. Along with the macro view, topics presented include:
- Loan Policy: concepts, and functional application.
- Monitoring and reporting: includes loan review, loan grading, loan loss reserve
- Analysis, and management reporting and information.
- Credit risk management in the commercial real estate portfolio. When is Debt Service Coverage Ratio the right management tool
- Loan Loss Reserve adequacy analysis
- CECL (Current Expected Credit Loss)
- Concentrations
- Participations
- Credit Culture
- Credit Discipline
- Profiles of successful loan portfolios
- UBPR/ comparative analysis
Purpose
Almost every troubled or failed bank has problem loans as the root cause of its difficulties. A bank's loan portfolio contains substantial risk exposure and a great potential for loss.
This course deals directly and specifically with management techniques for identifying, monitoring, and controlling risk in the loan portfolio.
It focuses on the tools necessary to maintain or change the loan portfolio and its risk objectives. The goal of this course is to assist in the risk management of the portfolio as a whole. It does not address the analysis of individual credits.
The tools of loan portfolio management are used to insure the portfolio direction is consistent with A/L decisions, and to indicate appropriate actions if it's not.
Objectives
After successfully completing this course, participants should be able to:
- recognize and qualify the risk inherent in the loan portfolio
- develop a macro perspective in regard to the loan portfolio rather than the perspective of individual loans
- understand the integration of loan policy, loan review, credit administration, and loan management
- develop knowledge of key loan portfolio quality statistical and ratio information
- issues and challenges in the evaluation of Loan Loss Reserve adequacy
- understand how senior bank management must and can use specific tools to manage the portfolio
Features
- Lecture
- Class Discussions
- Case Studies
- UBPR comparative analysis
Who should attend:
Senior Loan Officers, Senior Credit Officers, CFO’s, A/L managers, EWRM officers and Internal Auditors who want to learn more about loan portfolio risk management, Experienced lenders who wish to expand their loan portfolio management skills
Speaker - Gary D. Maples
President, River Edge Consulting LLC, Sheboygan Falls, Wisconsin
Gary currently provides
- consulting services (in the lending/credit administration areas)
- expert witness services
- and all types of credit training.
Previously Gary was a Bank President with thirty years experience in commercial lending, credit analysis, loan and credit administration, loan workouts and bank management. Currently he is on the Board of Directors of a community bank.
Other Teaching Experience includes: WI, IA, IL, KS, KT, MI, MN, NY, OH, and PA Bankers Assoc.; KS/NE Schools of Banking; Pacific Coast Banking School; Stonier Graduate School of Banking; Graduate School of Banking at the UW; Czech and Romanian Banking Institutes; ABA’s National Graduate Lending School.
General Information
A Continental Breakfast and Lunch will be provided.
Attire - Business Casual
8:30 - 9:00 Registration and Continental Breakfast
9:00 - 12:00 Seminar
12:00 - 1:00 Lunch
1:00 - 4:00 Seminar