Credit Early Warning Signs & Problem Loan Management
This course explores how lenders can detect early warning signs of credit risk and rising default probabilities. Learn to monitor borrower conditions, assess economic impacts, and take proactive steps to minimize loss and protect loan portfolios.
Overview
This course includes:
- On-demand videos
- Practice assessments
- Multiple hands-on learning activities
- Exposure to a real-world project
- 100% self-paced learning opportunities
- Certification of completion
Some level of probability of default is inevitable in any credit provision situation. Whilst the level of probability will initially be within acceptable tolerance levels, there is concern when that level of default probability increases. This will be triggered either by changing external environmental conditions such as deteriorating economic conditions which has the potential to impact loan portfolios or by factors specific to individual companies.
In either case it is important that the lender remains vigilant to the borrower’s environment and is able to identify early warning signs so that an effective plan can be implemented in order to minimise the risk and potential loss to the lender. The lender needs to be pro-active to ensure they become a doctor rather than an undertaker.
Skills You Will Gain
Learning Outcomes (At The End Of This Program, You Will Be Able To...)
- Explain how the stages of corporate failure progress and the impact of management on corporate distress.
- Identify business risk early warning signs.
- Analyse financial risk in order to establish how close the company is to actual failure.
- Formulate an exposure management template.
Prerequisites
This course is best suited for learners with experience in credit analysis or credit control. Participants should be comfortable navigating financial statements—profit and loss, balance sheet, and cash flow—and able to construct and interpret key financial ratios. A general awareness of different types of collateral used to support lending and credit facilities is also required to fully benefit from the course.
Who Should Attend
This course is ideal for credit analysts, corporate banking relationship managers, investment analysts, credit controllers, loan workout specialists, and collection managers seeking to strengthen their ability to identify, assess, and mitigate credit risk proactively.
