CREDIT RISK MANAGEMENT TRAINING COURSE

Credit risk remains one of the most significant risks facing banks, microfinance institutions, fintech companies, insurance firms, development finance institutions, and corporate organizations in Nigeria. Economic volatility, regulatory changes, inflationary pressures, foreign exchange fluctuations, and evolving business environments require credit professionals to adopt robust risk management frameworks.
This intensive three-day course provides participants with practical knowledge and skills for identifying, measuring, monitoring, controlling, and mitigating credit risk in line with Nigerian regulatory requirements and international best practices. The course examines the complete credit lifecycle from credit appraisal and approval to portfolio monitoring, problem loan management, and recovery strategies.
Participants will gain practical tools for strengthening credit decision-making, improving asset quality, reducing non-performing loans (NPLs), and enhancing organizational profitability.

Course Objectives
At the end of this programme, participants will be able to:
1. Understand the principles and concepts of credit risk management.
2. Identify major sources of credit risk in the Nigerian business environment.
3. Apply effective credit appraisal and risk assessment techniques.
4. Analyse financial statements for credit decision-making.
5. Develop risk-based lending and credit scoring approaches.
6. Implement effective credit monitoring and early warning systems.
7. Understand regulatory requirements and prudential guidelines in Nigeria.
8. Manage problem loans and non-performing assets effectively.
9. Develop recovery and debt restructuring strategies.
10. Strengthen organizational credit risk governance and controls.

Who Should Attend
This course is designed for:
• Credit Managers
• Credit Officers and Analysts
• Relationship Managers
• Loan Officers
• Risk Management Professionals
• Internal Auditors
• Compliance Officers
• Recovery and Collection Officers
• Branch Managers
• Finance Managers
• Treasury Officers
• Microfinance Practitioners
• Fintech Credit Professionals
• Cooperative Society Managers
• SME Lending Officers
• Financial Controllers
• Business Development Officers involved in lending decisions

Benefits to the Organisation
Upon completion, organizations will benefit from:
• Improved quality of lending decisions.
• Reduced loan default rates.
• Enhanced credit portfolio performance.
• Lower levels of non-performing loans (NPLs).
• Stronger risk management culture.
• Better compliance with regulatory requirements.
• Improved profitability and capital preservation.
• More effective loan monitoring systems.
• Enhanced recovery and collections performance.
• Strengthened corporate governance and risk oversight.

Benefits to the Individual
Participants will gain:
• Practical credit risk management skills.
• Enhanced financial analysis capabilities.
• Better understanding of Nigerian credit regulations.
• Improved credit appraisal and decision-making competence.
• Skills for identifying early warning signals.
• Greater confidence in managing loan portfolios.
• Knowledge of debt recovery and restructuring techniques.
• Professional development and career advancement opportunities.
• Exposure to international best practices.
• Practical tools and templates applicable to daily work.

Course Methodology
The programme employs a highly interactive and practical learning approach including:
• Facilitator-led presentations
• Interactive discussions
• Nigerian case studies
• Group exercises
• Credit analysis workshops
• Financial statement analysis exercises
• Credit proposal review simulations
• Risk assessment exercises
• Problem loan management scenarios
• Experience sharing sessions
• Question and answer sessions
• Action planning and implementation discussions

Course Content
Day 1: Foundations of Credit Risk Management and Credit Assessment
Module 1: Introduction to Credit Risk Management
Understanding Credit Risk
• Definition and nature of credit risk
• Types of credit risk
• Sources of credit risk
• Credit risk versus other financial risks
• Credit risk management framework
• Credit culture and risk appetite
Credit Risk Environment in Nigeria
• Current economic realities and credit risk implications
• Impact of inflation on credit quality
• Foreign exchange risk and lending decisions
• Sectoral risk considerations
• Challenges facing lenders in Nigeria

Module 2: Credit Risk Governance and Regulatory Framework
Credit Risk Governance
• Roles and responsibilities of the Board
• Management responsibilities
• Three lines of defence model
• Credit committees and approval structures
• Risk governance framework
Regulatory Requirements
• Prudential guidelines
• Loan classification requirements
• Expected Credit Loss (ECL) principles
• Basel principles for credit risk management
• Regulatory reporting requirements
• Corporate governance expectations

Module 3: Credit Appraisal and Risk Assessment
The Credit Evaluation Process
• Credit lifecycle
• Credit application review
• Information gathering techniques
• Due diligence requirements
The 5 Cs of Credit
• Character
• Capacity
• Capital
• Collateral
• Conditions
Additional Credit Assessment Factors
• Industry analysis
• Market analysis
• Management assessment
• Business model evaluation

Module 4: Financial Statement Analysis for Credit Decisions
Understanding Financial Statements
• Statement of financial position
• Income statement
• Cash flow statement
Financial Analysis Techniques
• Liquidity analysis
• Profitability analysis
• Solvency analysis
• Efficiency ratios
• Cash flow adequacy assessment
Practical Exercise
• Credit analysis of a Nigerian SME
• Financial ratio calculations
• Credit recommendation preparation

Day 2: Credit Measurement, Monitoring and Portfolio Management
Module 5: Credit Risk Measurement Techniques
Credit Risk Measurement Concepts
• Probability of Default (PD)
• Loss Given Default (LGD)
• Exposure at Default (EAD)
• Expected Loss calculations
Credit Scoring and Rating Systems
• Internal credit rating systems
• Risk-based pricing
• Credit scoring models
• SME credit assessment models
• Retail lending scorecards
Practical Workshop
• Building a simple credit rating model
• Credit scoring exercise

Module 6: Credit Structuring and Risk Mitigation
Credit Structuring Principles
• Loan types and structures
• Loan tenor determination
• Repayment structures
• Covenant design
Credit Risk Mitigation Techniques
• Collateral management
• Guarantees and indemnities
• Insurance arrangements
• Diversification strategies
Collateral Management
• Types of collateral
• Collateral valuation
• Perfection of security interests
• Collateral monitoring

Module 6: Credit Structuring and Risk Mitigation
Credit Structuring Principles
• Loan types and structures
• Loan tenor determination
• Repayment structures
• Covenant design
Credit Risk Mitigation Techniques
• Collateral management
• Guarantees and indemnities
• Insurance arrangements
• Diversification strategies
Collateral Management
• Types of collateral
• Collateral valuation
• Perfection of security interests
• Collateral monitoring

Module 8: Credit Monitoring and Early Warning Systems
Loan Monitoring Framework
• Post-disbursement monitoring
• Account performance monitoring
• Site visits and inspections
Early Warning Signals
• Financial warning indicators
• Operational warning indicators
• Behavioural warning indicators
• Industry warning signals
Developing Effective Monitoring Systems
• Monitoring reports
• Exception reporting
• Escalation procedures
Case Study
• Identifying deteriorating credit facilities
Day 3: Problem Loan Management, Recovery and Emerging Trends
Module 9: Non-Performing Loan (NPL) Management
Understanding Problem Loans
• Causes of loan default
• Loan deterioration cycle
• NPL identification and classification
Managing Distressed Credits
• Remedial management approaches
• Loan restructuring strategies
• Rescheduling and refinancing
• Workout arrangements
Case Study
• Managing distressed corporate accounts

Module 10: Debt Recovery and Collections Management
Recovery Strategies
• Recovery planning
• Negotiation techniques
• Recovery prioritization
Collection Techniques
• Collection workflow
• Recovery tools and approaches
• Customer engagement strategies
Legal Aspects of Recovery
• Documentation review
• Enforcement procedures
• Alternative dispute resolution
• Recovery best practices
Practical Exercise
• Debt recovery negotiation role play

Module 11: Credit Fraud Prevention and Operational Risk Considerations
Credit Fraud Risks
• Common lending fraud schemes
• Insider-related fraud risks
• Identity fraud
• Documentation fraud
Fraud Detection Techniques
• Red flags and warning signs
• Verification processes
• Control mechanisms
Strengthening Credit Controls
• Segregation of duties
• Approval controls
• Monitoring controls

Module 12: Emerging Trends and Future of Credit Risk Management
Digital Credit Risk Management
• Fintech lending risks
• Alternative credit scoring
• Data analytics in credit risk
Environmental and Social Risk Considerations
• ESG considerations in lending
• Sustainable finance principles
Building a Resilient Credit Risk Framework
• Lessons from recent economic disruptions
• Future challenges and opportunities

Capstone Workshop and Action Planning
Group Case Study
Participants will:
• Review a complete credit proposal.
• Conduct borrower risk assessment.
• Analyze financial statements.
• Determine appropriate credit structure.
• Recommend approval conditions.
• Develop monitoring and recovery plans.
Personal Action Plan
• Key learning points
• Workplace application strategies
• Performance improvement commitments

Course Deliverables
Participants will receive:
• Comprehensive course manual
• Credit risk assessment templates
• Financial analysis tools
• Credit monitoring checklists
• Loan review templates
• Recovery action plan templates
• Case study materials
• Certificate of participation