9 Class Hours

Instructor: Jerry Crigger

This five-day course introduces participants to a strategic framework for portfolio credit risk management focusing on the integration of priorities, culture, risk strategy, and risk controls. Risk management consists of two components: the types and magnitude of risks assumed (the Quantity of Risk) and how the institution manages the risk (the Quality of Risk Management). Students will develop a credit risk profile for their institution integrating both the Quantity of Risk and the Quality of Risk Management.

The course has an intersession assignment, which will provide students an opportunity to develop a risk profile for their institution and make specific recommendations to improve their bank’s credit risk management practices.

At the conclusion of this course students will be able to:

  • Utilize a structured framework to model and manage the financial institution’s loan portfolio
  • Identify and understand the components of Strategic Loan Portfolio Management:
    • Establishing priorities
    • Selecting a culture
    • Determining risk strategy
    • Implementing Risk Controls
  • Identify and understand the importance of different types of risk:
    • Transaction risk
    • Intrinsic risk
    • Concentration risk
  • Assess the bank’s vulnerability to the Three Deadly Sins of portfolio credit risk management
  • Benchmark the bank’s credit process against best practices in credit risk management

Annual School Session

Second Year Core Course

Lending Track