Architecting Prudence: A Course on Credit Risk Appetite and Policy Formulation
Introduction
For any financial institution, a well-defined credit risk appetite is the cornerstone of a sustainable and profitable lending business. It provides a clear framework that guides all lending decisions, ensuring they align with the institution's strategic goals and overall risk tolerance. Without a formal risk appetite and the policies to enforce it, a financial institution may unknowingly expose itself to excessive risk, leading to potential portfolio degradation, financial losses, and regulatory scrutiny. The process of setting a risk appetite is not about avoiding all risk but rather about consciously choosing which risks to take and which to avoid, thereby creating a balanced and resilient lending portfolio.
This five-day training course is designed to empower lending professionals with the skills to develop, implement, and manage a robust credit risk framework. The curriculum will guide participants through the crucial steps of defining risk appetite statements, translating them into actionable policies, and monitoring performance against these benchmarks. Participants will learn how to create a lending environment that is both profitable and prudently managed, ensuring long-term stability and growth. By the end of this course, you will be able to lead the development of a strong credit risk framework that protects your institution and its members.
Duration 5 days
Target Audience This course is for all credit risk professionals, including credit managers, loan underwriters, risk analysts, and senior management involved in setting lending strategy.
Objectives
- To understand the concept of credit risk appetite and its importance.
- To learn how to define and articulate a formal credit risk appetite statement.
- To master the process of translating risk appetite into clear lending policies.
- To learn how to align credit policies with business strategy and goals.
- To understand the role of governance in the policy formulation process.
- To master the techniques for monitoring and reporting on risk appetite.
- To understand the key metrics and indicators used in credit risk.
- To learn from case studies of successful and unsuccessful policy implementation.
- To understand the relationship between credit risk appetite, policy, and compliance.
- To develop a comprehensive framework for a credit policy manual.
Course Modules
Module 1: The Foundation of Risk Appetite
- The difference between risk appetite and risk tolerance.
- The importance of a formal risk appetite statement.
- Key components of a well-defined risk appetite.
- How risk appetite aligns with an institution's strategic goals.
- The role of the board and senior management in setting risk appetite.
Module 2: Defining the Credit Risk Appetite Statement
- Identifying and measuring key risk dimensions (e.g., portfolio concentration, borrower type).
- Using both qualitative and quantitative metrics.
- The process of drafting a clear and concise statement.
- Aligning risk appetite with regulatory requirements.
- Gaining buy-in from key stakeholders.
Module 3: Policy Formulation Principles
- The purpose and structure of a credit policy manual.
- Translating high-level risk appetite into specific lending rules.
- The importance of clear, unambiguous language in policy.
- The process of drafting and reviewing new policies.
- Ensuring policies are adaptable to market changes.
Module 4: Underwriting and Approval Policies
- The role of policy in the loan underwriting process.
- Setting clear criteria for loan applications and approvals.
- The importance of a consistent and fair approval process.
- The use of loan scoring models and other tools.
- Creating policies for exceptions and waivers.
Module 5: Portfolio Management Policies
- Policies for monitoring loan performance.
- Setting limits on portfolio concentration and exposure.
- The importance of a clear collections policy.
- Policies for loan restructuring and modification.
- The role of stress testing in portfolio management.
Module 6: Governance and Oversight
- The role of a credit committee.
- The process for regular policy review and updates.
- Ensuring compliance with internal and external regulations.
- The importance of clear roles and responsibilities.
- The role of internal audit in monitoring policy adherence.
Module 7: Key Risk Indicators and Metrics
- Defining key risk indicators (KRIs) for credit risk.
- Setting thresholds for each KRI.
- The process of regular data collection and analysis.
- Creating a dashboard for monitoring risk.
- Using data to inform policy changes.
Module 8: The Policy Lifecycle
- The initial formulation and approval of a policy.
- The process of implementation and training.
- Ongoing monitoring and review.
- The importance of a formal change management process.
- The role of communication in the policy lifecycle.
Module 9: Case Studies in Policy Failure and Success
- An analysis of real-world examples of policy failure.
- What happens when risk appetite is not defined or is ignored.
- Examining successful policy implementation and its benefits.
- Lessons from market events and financial crises.
- The strategic value of a strong risk framework.
Module 10: Building a Culture of Prudence
- The role of leadership in promoting a risk-aware culture.
- How to train all staff on the importance of policies.
- The relationship between credit risk and employee incentives.
- The importance of transparency and accountability.
- The value of a strong credit risk framework for all stakeholders.
CERTIFICATION
- Upon successful completion of this training, participants will be issued with Macskills Training and Development Institute Certificate
TRAINING VENUE
- Training will be held at Macskills Training Centre. We also tailor make the training upon request at different locations across the world.
AIRPORT PICK UP AND ACCOMMODATION
- Airport Pick Up is provided by the institute. Accommodation is arranged upon request
TERMS OF PAYMENT
Payment should be made to Macskills Development Institute bank account before the start of the training and receipts sent to info@macskillsdevelopment.com
For More Details call: +254-114-087-180
Architecting Prudence: A Course On Credit Risk Appetite And Policy Formulation in Morocco
| Dates | Fees | Location | Action |
|---|---|---|---|
| 13/10/2025 - 17/10/2025 | $1,750 | Mombasa |
|
| 20/10/2025 - 24/10/2025 | $1,500 | Nairobi |
|
| 27/10/2025 - 31/10/2025 | $1,500 | Nairobi |
|
| 03/11/2025 - 07/11/2025 | $2,900 | Kigali |
|
| 10/11/2025 - 14/11/2025 | $1,500 | Nairobi |
|
| 24/11/2025 - 28/11/2025 | $1,500 | Nairobi |
|
| 01/12/2025 - 05/12/2025 | $1,500 | Nairobi |
|
| 08/12/2025 - 12/12/2025 | $1,750 | Mombasa |
|
| 05/01/2026 - 09/01/2026 | $1,750 | Mombasa |
|
| 12/01/2026 - 16/01/2026 | $1,500 | Nairobi |
|
| 26/01/2026 - 30/01/2026 | $1,500 | Nairobi |
|
| 02/02/2026 - 06/02/2026 | $4,000 | Pretoria |
|
| 09/02/2026 - 13/02/2026 | $1,500 | Nairobi |
|
| 23/02/2026 - 27/02/2026 | $1,500 | Nairobi |
|
| 02/03/2026 - 06/03/2026 | $1,750 | Mombasa |
|
| 16/03/2026 - 20/03/2026 | $1,500 | Nairobi |
|
| 23/03/2026 - 27/03/2026 | $1,500 | Nairobi |
|
| 06/04/2026 - 10/04/2026 | $4,950 | Dubai |
|
| 13/04/2026 - 17/04/2026 | $1,500 | Nairobi |
|
| 20/04/2026 - 24/04/2026 | $1,500 | Nairobi |
|
| 04/05/2026 - 08/05/2026 | $1,750 | Mombasa |
|
| 11/05/2026 - 15/05/2026 | $1,500 | Nairobi |
|
| 25/05/2026 - 29/05/2026 | $1,500 | Nairobi |
|
| 01/06/2026 - 05/06/2026 | $2,900 | Kigali |
|
| 08/06/2026 - 12/06/2026 | $1,500 | Nairobi |
|
| 22/06/2026 - 26/06/2026 | $1,500 | Nairobi |
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