Credit Risk Management and Credit Portfolio Management
The programme will strengthen the team’s ability to identify credit risks, maintain reliable credit information, monitor portfolio performance, and coordinate timely action with Credit, Risk, Business, Finance, and Recovery teams.
About this course
The programme will strengthen the team’s ability to identify credit risks, maintain reliable credit information, monitor portfolio performance, and coordinate timely action with Credit, Risk, Business, Finance, and Recovery teams.
Target participants: Central Operations Department team
Proposed duration: Three days
Delivery approach: Practical workshops, credit process walkthroughs, portfolio analysis, case studies, and group exercises using simulated banking data.
Learning objectives
- Explain credit risk across the lending lifecycle and Central Operations’ responsibilities.
- Identify weaknesses in credit processing, documentation, disbursement, and monitoring.
- Interpret portfolio quality indicators and investigate unusual movements.
- Monitor arrears, concentrations, facility limits, and approval conditions.
- Recognise early warning signals and escalate exceptions through appropriate channels.
- Prepare accurate portfolio reports supported by reconciled data.
- Develop practical actions to strengthen operational controls and portfolio monitoring.
Programme structure
1Day 1: Credit risk fundamentals and operational controls
2Day 2: Portfolio monitoring, arrears, and early warning
3Day 3: Portfolio analysis, reporting, and corrective action
Prerequisites / requirements
The programme will strengthen the team\u2019s ability to identify credit risks, maintain reliable credit information, monitor portfolio performance, and coordinate timely action with Credit, Risk, Business, Finance, and Recovery teams.
Target participants: Central Operations Department team
Proposed duration: Three days
Delivery approach: Practical workshops, credit process walkthroughs, portfolio analysis, case studies, and group exercises using simulated banking data."]
Practical outputs
- A credit lifecycle risk and control checklist.
- A facility setup and disbursement verification template.
- A credit portfolio monitoring workbook.
- An arrears ageing and movement analysis template.
- A concentration monitoring template.
- An early warning and escalation register.
- A covenant, collateral, and approval-condition tracker.
- A portfolio dashboard and management reporting template.
- A corrective-action tracker and 90-day departmental improvement plan.
Expected outcomes
- Explain credit risk across the lending lifecycle and Central Operations’ responsibilities.
- Identify weaknesses in credit processing, documentation, disbursement, and monitoring.
- Interpret portfolio quality indicators and investigate unusual movements.
- Monitor arrears, concentrations, facility limits, and approval conditions.
- Recognise early warning signals and escalate exceptions through appropriate channels.
- Prepare accurate portfolio reports supported by reconciled data.
- Develop practical actions to strengthen operational controls and portfolio monitoring.
Detailed programme information
Training content, practical exercises and delivery arrangements
Programme OverviewPurpose and target participants
The programme will strengthen the team’s ability to identify credit risks, maintain reliable credit information, monitor portfolio performance, and coordinate timely action with Credit, Risk, Business, Finance, and Recovery teams.
Target participants: Central Operations Department team
Proposed duration: Three days
Learning OutcomesCapabilities participants will develop
Explain credit risk across the lending lifecycle and Central Operations’ responsibilities.
Identify weaknesses in credit processing, documentation, disbursement, and monitoring.
Interpret portfolio quality indicators and investigate unusual movements.
Monitor arrears, concentrations, facility limits, and approval conditions.
Recognise early warning signals and escalate exceptions through appropriate channels.
Prepare accurate portfolio reports supported by reconciled data.
Develop practical actions to strengthen operational controls and portfolio monitoring.
Detailed Training ProgrammeDaily modules, training content and practical application
1Day 1: Credit risk fundamentals and operational controls
- Understanding credit risk: sources of repayment risk; borrower, transaction, sector, and economic factors; interaction between credit risk, operational risk, and fraud. Understanding funded facilities and contingent exposures.
Map credit risks across selected banking products and identify where operational failures can increase exposure.
2Credit governance and responsibilities
- Credit policies, delegated authority, approval limits, policy exceptions, segregation of duties, and escalation. Responsibilities of Business, Credit, Risk, Central Operations, Finance, and Recovery.
Develop a responsibility map for the credit lifecycle, including decision rights and handover points.
3The credit lifecycle
- Origination, appraisal, approval, documentation, disbursement, servicing, monitoring, restructuring, and recovery. Understanding the information and evidence required at each stage.
Conduct a process walkthrough and identify missing controls or unclear ownership.
4Understanding credit approvals and facility terms
- Facility type, purpose, amount, tenor, pricing, repayment terms, security, covenants, and conditions. Translating approved terms into accurate system setup and monitoring requirements.
Review an approval memorandum and prepare a facility setup and verification checklist.
5Documentation and pre-disbursement controls
- Conditions precedent and subsequent; document verification; security status; approved waivers; disbursement authority; payment instructions; and record retention.
Assess a disbursement request containing incomplete documentation and identify the required actions.
6Facility setup and transaction accuracy
- Customer and facility identifiers, limits, repayment schedules, interest and fee parameters, maturity dates, amendments, renewals, and independent verification.
Compare approved terms with a simulated system record and produce an exception report.
7Day 2: Portfolio monitoring, arrears, and early warning
- Building a reliable portfolio view: customer-level versus facility-level records; outstanding balances versus approved limits; undrawn commitments; reporting dates; historical snapshots; and avoiding duplicate exposures.
Assemble and reconcile a portfolio dataset from facility, repayment, and customer records.
8Credit portfolio quality indicators
- Exposure distribution, overdue amounts, days past due, arrears ageing, non-performing exposures, restructures, write-offs, recoveries, and portfolio movements. Defining numerator, denominator, and reporting period consistently.
Calculate selected indicators and explain changes between reporting periods.
9Arrears and repayment monitoring
- Scheduled versus actual repayments; partial and missed payments; overdue principal and interest; delinquency migration; overdue maturity; and unresolved payment allocation issues.
Prepare an arrears ageing report and distinguish genuine repayment deterioration from processing errors.
10Early warning signals
- Repeated excesses, missed payments, declining account activity, frequent extensions, covenant breaches, expired security documentation, concentration concerns, and data anomalies. Separating warning signals from confirmed credit deterioration.
Build an early warning register with supporting evidence, ownership, escalation, and follow-up dates.
11Covenants, collateral, and approval-condition monitoring
- Tracking covenant submissions and compliance; security perfection; valuations; insurance; expiry dates; approved exceptions; and remediation deadlines. Understanding that collateral does not replace repayment capacity.
Review a monitoring register and prioritise overdue or unresolved items.
12Portfolio concentration and diversification
- Exposure by borrower group, sector, product, branch, geography, currency, and maturity. Monitoring large exposures and internal limits using the Bank’s approved definitions.
Identify concentrations in a simulated portfolio and prepare a management summary.
13Day 3: Portfolio analysis, reporting, and corrective action
- Portfolio segmentation and performance analysis: comparing products, sectors, branches, customer segments, and origination periods. Understanding how changes in portfolio mix affect reported performance.
Identify segments driving arrears growth and distinguish volume effects from deterioration in quality.
14Restructured and problem facilities
- Operational requirements for approved restructures; repayment schedule changes; documentation; system amendments; subsequent monitoring; and coordination with Recovery and other responsible functions.
Review a restructured facility and identify setup, documentation, and monitoring weaknesses.
15Credit impairment awareness
- Purpose of expected credit losses; broad understanding of staging, default indicators, probability of default, loss given default, and exposure at default. Central Operations’ contribution to accurate balances, dates, repayment histories, and facility information.
Identify data gaps that could affect impairment calculations and agree corrective actions with relevant teams.
16Scenario analysis and portfolio vulnerability
- Exploring the potential effects of repayment delays, sector deterioration, interest rate changes, or currency movements. Distinguishing illustrative scenarios from formal risk models.
Assess a hypothetical deterioration scenario and identify monitoring priorities and operational responses.
17Portfolio reporting and dashboards
- Designing concise reports on exposures, arrears, concentrations, documentation exceptions, upcoming maturities, and overdue reviews. Reconciling reports to authoritative records and explaining material variances.
Prepare a credit portfolio dashboard with a management commentary and exception action log.
18Escalation and corrective action
- Prioritising exceptions by exposure, urgency, and potential impact; assigning owners; agreeing deadlines; tracking resolution; and verifying closure. Maintaining an evidence trail and avoiding unsupported status updates.
Conduct a simulated portfolio review meeting and agree a coordinated action plan.
19Integrated practical exercise
- Applying credit controls, portfolio analysis, early warning identification, and reporting to one dataset.
Present key portfolio risks, operational weaknesses, and a 90-day departmental improvement plan.
Training MethodologyDelivery approach described in the brief
Practical workshops, credit process walkthroughs, portfolio analysis, case studies, and group exercises using simulated banking data.
Expected Learning OutcomesTraining outcomes as specified in the brief
Practical Case StudiesCase studies and exercises from the training brief
- Case study 1 — Disbursement outside approved terms A facility is booked with a different repayment schedule and incomplete security documentation. Participants identify the deviations, assess their implications, and define the necessary escalation and correction steps.
- Case study 2 — Rising arrears with conflicting reports Two departments report different overdue balances. Participants reconcile the underlying data, investigate payment allocation and reporting-date differences, and prepare a consistent arrears report.
- Case study 3 — Hidden portfolio concentration Several facilities appear diversified but belong to connected borrowers operating in the same sector. Participants examine aggregation, data quality, and concentration reporting.
- Case study 4 — Restructuring without effective follow-up A borrower receives revised repayment terms, but system records and monitoring schedules are not updated consistently. Participants identify control gaps and develop a coordinated remediation plan.
- Case study 5 — Early warning escalation A portfolio shows repeated excesses, missed payments, overdue covenant submissions, and expiring insurance. Participants prioritise the cases and prepare an evidence-based escalation report.
Suggested portfolio monitoring indicators
All classifications, thresholds, calculation methods, and escalation rules will be aligned with I&M Bank Rwanda’s approved policies and applicable requirements.
Departmental responsibilities and coordination
The training will distinguish operational verification and reporting responsibilities from credit approval decisions and independent risk oversight.
Training Materials and DeliverablesParticipant deliverables described in the training brief
Training materials and participant deliverables
Assessment and customisationAssessment and follow-up guidance
Learning will be assessed through a pre-training knowledge check, practical exercises, and an integrated portfolio review presentation.
Before delivery, the Academy training team will agree with the Central Operations Department on priority challenges, product coverage, existing responsibilities, and reporting needs. Exercises will use anonymised or simulated information and suitable examples from the Bank’s approved workflows.
Scope: This programme focuses on practical credit operations and portfolio monitoring. Detailed credit model development, impairment model validation, and specialist recovery negotiations would require separate training.
Monitoring area / Illustrative indicators
- Exposure — Outstanding balances, approved limits, utilisation, undrawn commitments, and contingent exposures reported separately where appropriate.
- Repayment performance — Overdue amounts, facilities in arrears, days-past-due distribution, and movement between arrears bands.
- Portfolio quality — Non-performing exposures, restructured facilities, write-offs, and recoveries using approved definitions.
- Concentration — Exposure by connected borrower group, sector, product, branch, currency, and maturity.
- Operational exceptions — Unmet approval conditions, unauthorised limit excesses, inaccurate facility setup, and unresolved reconciliation differences.
- Monitoring discipline — Overdue reviews, covenant submissions, collateral valuations, insurance renewals, and unresolved early warning cases.
Central Operations contribution / Coordination required
- Accurate facility booking and maintenance — Credit Administration, Business, and system support teams.
- Verification of approved terms and disbursement conditions — Authorised credit approvers and responsible control functions.
- Reliable repayment and exposure information — Finance, Credit Risk, and reporting teams.
- Identification and escalation of processing exceptions — Business owners, Credit Administration, and Risk.
- Implementation of authorised facility amendments — Credit, Legal, Recovery, and relevant operations teams.
- Closure of operational monitoring actions — Named action owners, with independent verification where required.
Assessments
Assessment requirements are provided with your learning materials.
Group activities
Activities and collaboration opportunities are available to enrolled employees where applicable.
Resources
Course materials are available through your learning account once access is granted.
Certificate eligibility is subject to the course's completion and assessment requirements.