Models supporting credit risk and non-performing debt fail quietly, and usually at the worst moment. Capital, liquidity and reputation are all exposed by weak handling of non-performing debt. Participants test their assumptions about the wider financial and banking practice agenda against scenarios designed to break weak ones. They acquire practical criteria for judging when credit risk and non-performing debt is working and when it is only appearing to. Where this strand of financial and banking practice is measured, it improves; where it is only discussed, it drifts. The programme takes participants through non-performing debt end to end, from framing the problem to closing it out. Moving credit risk and non-performing debt from written policy into daily practice is not achieved by a single decision. The content is relevant to those who own non-performing debt and to those who are held accountable for its results. Participants leave with a first-ninety-days plan for the wider financial and banking practice agenda rather than a set of notes.
Expected Learning Outcomes
✓
Present the case for investment in credit risk and non-performing debt in terms that a finance function will accept.
✓
Apply the relevant accounting and disclosure treatment to non-performing debt.
✓
Review the contractual and legal exposure created by credit risk and non-performing debt.
✓
Review contracts and agreements for the obligations they create around non-performing debt.
✓
Apply a repeatable review cycle to credit risk and non-performing debt and act on what it produces.
✓
Establish the segregation of duties required around non-performing debt.
✓
Document the approval chain for exceptions to policy on credit risk and non-performing debt.
Who Should Attend
✓
Procurement and contracting staff whose agreements set obligations around credit risk and non-performing debt.
✓
Internal auditors reviewing the controls around non-performing debt.
✓
Regulatory reporting analysts covering credit risk and non-performing debt.
✓
Staff seconded into improvement work on non-performing debt.
✓
Credit and underwriting officers assessing credit risk and non-performing debt.
✓
Investment and portfolio managers exposed to non-performing debt.
Course Modules
Open any module to see its sessions and topics.
01
Credit risk and non-performing debt: the control framework and segregation of duties
2 sessions · 8 points
Session 1Making credit risk and non-performing debt work when resources are constrained
Identify where judgement in credit risk and non-performing debt is legitimate and where it is not.
Agree who signs off non-performing debt and record that they did.
Test credit risk and non-performing debt against a scenario the organisation would rather not model.
Plan the sequence in which improvements to non-performing debt will be introduced.
Session 2Evidencing that non-performing debt worked as designed
Design the exception process for credit risk and non-performing debt and require a documented rationale.
Assess the capital consumed by non-performing debt under current and stressed conditions.
Prepare the summary of credit risk and non-performing debt that senior management will read.
Review concentration by counterparty, sector and geography inside non-performing debt.
02
Non-performing debt: exceptions, breaches and remediation
2 sessions · 8 points
Session 1The control on non-performing debt that looks strong and is not
Document the remediation plan for each known weakness in credit risk and non-performing debt.
Build the internal briefing that explains non-performing debt to those affected.
Record what was learned when credit risk and non-performing debt did not go as planned.
Establish the boundary of non-performing debt and record what sits outside it.
Session 2What has to be agreed before work on non-performing debt starts
Review the pricing of credit risk and non-performing debt against the risk being assumed.
Translate the appetite for non-performing debt into limits someone monitors daily.
Set early warning indicators for credit risk and non-performing debt with defined action thresholds.
Confirm regulatory reporting on non-performing debt is complete, timely and reconciled.
03
Non-performing debt: audit evidence and examiner readiness
2 sessions · 8 points
Session 1What a supervisor will ask about non-performing debt, and in what order
Define acceptance criteria for credit risk and non-performing debt in advance.
Set escalation thresholds for non-performing debt that work out of hours.
Confirm reporting on credit risk and non-performing debt reaches the committee that can act on it.
Name a single owner for each element of non-performing debt.
Session 2Reporting credit risk and non-performing debt so the reader can act on it
Identify the key controls over credit risk and non-performing debt and who tests them.
Confirm that reporting on non-performing debt reaches the people who can act.
List the assumptions in any model supporting credit risk and non-performing debt and when each was last challenged.
Write down the assumptions underpinning the approach to non-performing debt.
04
Non-performing debt: measurement, models and their assumptions
2 sessions · 8 points
Session 1The early warning on non-performing debt that arrives in time
Record the rationale for each significant choice made about credit risk and non-performing debt.
Test the procedure for non-performing debt against a realistic scenario.
Check the accounting treatment applied to credit risk and non-performing debt against current standards.
State the risk appetite for non-performing debt as a number, not an adjective.
Session 2Where non-performing debt typically breaks, and why
Set out how exceptions to credit risk and non-performing debt are requested and approved.
Verify reconciliation and settlement controls covering non-performing debt.
Check that credit risk and non-performing debt still works when volumes rise unexpectedly.
Identify the data already collected that bears on non-performing debt.
Choose the package that suits you
Silver Package
At least 3 people
USD1,250
Workshop or Program Participation
Airport Transfers
Customized Badge
Expert Mentorship (Private Sessions)
Supervision & Secretarial Services
Accredited Certificate of Participation
Complete Training Kit
Coffee Break
Closing Ceremony
Gold Package
At least 3 people
USD1,850
5-night stay in a 5-star hotel
Workshop or Program Participation
Airport Transfers
Customized Badge
Expert Mentorship (Private Sessions)
Supervision & Secretarial Services
Accredited Certificate of Participation
Complete Training Kit
Coffee Break
Closing Ceremony
Complete your registration
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