Risk Management Program in Consumer Finance

The Risk Management Program in Consumer Finance Program provides participants with the knowledge and methods necessary to perform their assigned tasks and a comprehensive understanding of credit risks in light of the Basel Committee’s international framework, enabling them to assess the credit risk levels of borrowers and create loan provisions to reduce credit risks through:

• Explanation and simplification of credit risk concepts.

• The international framework of the Basel Committee and its requirements.

• Evaluating the creditworthiness of customers.

• Determining the credit risk rating and forming loan provisions for companies and individuals.
• Credit risks related to consumer financing and methods to mitigate them.
  

Target groups of the program

• Credit department officials in consumer finance companies.
• Credit risk analysts at consumer finance companies.
• Those working in the field of financing small and medium enterprises and microfinance.

Key highlights of the Risk Management Program in Consumer Finance

Introduction to Credit Risk and the Basel Committee

• Basel Accord and Risk Management.
• Market risk, liquidity risk, operational risk, and credit risk.
• Stages of the risk management process.

Creditworthiness of customers and the risks of consumer financing

• Credit strategies and credit ceilings.
• Means of mitigating credit risk.

Credit risk rating and loan provisions

• Factors affecting the determination of creditworthiness.
• The importance of credit inquiry.
• The analytical methods used in determining creditworthiness and customer risks.
• Collateral and its types.
• Principles of credit monitoring.

Principles of creditworthiness assessment and loan provisioning for companies and individuals

• Principles of evaluation and provision formation for individuals.
• Principles of evaluation and allocation formation for small and medium enterprises

Training duration

15 hours over 3 days