A single wave of loan defaults can erode years of a bank’s profitability within months – which is why credit risk sits at the very centre of financial stability today. Banks and financial institutions operating in a fast-changing, increasingly complex market can no longer treat credit assessment as a routine back-office task; it has become a strategic function that determines whether an institution weathers economic shocks or is exposed by them.

This Training Course on Managing and Mitigating Credit Risk in Banking Institutions, delivered by the Arab British Fellowship Training Academy, equips participants with the practical tools and analytical judgement needed to assess borrower reliability, monitor exposure continuously, and respond decisively when risk indicators shift. Beyond individual transactions, the course builds the internal-policy mindset banks need to keep credit portfolios healthy, regulatory-compliant, and resilient through changing economic cycles.

• Build a solid grasp of credit risk concepts and how they apply across day-to-day banking operations.
• Assess and analyse the credit exposure tied to individual customers as well as full portfolios of transactions.
• Apply the monitoring tools and techniques financial institutions rely on to track credit risk in real time.
• Design mitigation strategies and internal policies that protect institutional sustainability.
• Read the economic and financial consequences credit risk can trigger, and respond to them before they escalate.
• Translate risk analysis into confident, well-informed lending decisions even in volatile business conditions.

Who Should Attend?

• Credit analysts and risk officers responsible for evaluating banking exposure.
• Credit and financial marketing teams involved in structuring lending decisions.
• Risk management leaders in banks and financial institutions.
• Professionals seeking to build or refresh their expertise in credit risk practice.

Module 1: Why Credit Risk Determines a Bank’s Survival

• What credit risk really means for a bank’s day-to-day stability, not just its textbook definition.
• How defaults and delayed repayments ripple into liquidity, profitability, and an institution’s ability to adapt to economic shocks.
• Global economic pressures, financial crises, and shifting monetary policy as sources of credit exposure.

Module 2: The Rulebook Banks Operate Under

• Basel II and Basel III as the regulatory backbone of credit risk management.
• Basel Committee on Banking Supervision standards and how they steer institutional practice.
• Internal and external audit, central bank oversight, and compliance with legal requirements.

Module 3: Reading the Customer Before You Lend

• Financial analysis tools, statements, and ratios used to judge repayment capacity.
• Credit history and financial background as predictors of future behaviour.
• Setting appropriate credit limits based on what the data actually shows.

Module 4: Models and Metrics That Quantify Risk

• Credit rating models, the Altman Z-score, and statistical forecasting tools.
• Key performance indicators – loan-to-deposit ratio, non-performing loans ratio, credit quality index.
• Financial ratios and future cash-flow analysis to gauge debt repayment capacity.

Module 5: Spreading and Securing Exposure

• Portfolio diversification across customer segments, sectors, geographies, and products.
• Focusing exposure toward lower-risk sectors without sacrificing growth.
• Tangible and intangible collateral: valuation, assessment, and its effect on credit terms.

Module 6: Building the Internal Safety Net

• Strict credit-granting standards, approval workflows, and ongoing review procedures.
• Early-warning systems and continuous monitoring of credit performance.
• Monthly and annual credit reporting, including the use of Big Data in risk reports.

Module 7: When Risk Turns Into a Decision

• Restructuring debt, adjusting repayment terms, and managing relationships with delinquent clients.
• Setting loan amounts, credit terms, and repayment periods based on risk evaluation.
• Allocating investments and resources cautiously when dealing with higher-risk clients.

Module 8: Staying Stable Through Economic Turbulence

• Protecting liquidity and profitability when credit risk intensifies during downturns.
• Updating credit policies in line with market fluctuations and economic variables.
• Long-term sustainability strategies that steer banks away from high-risk exposure.

Module 9: Technology’s Growing Role in Credit Risk

• Artificial intelligence and machine learning models for analysing customer credit behaviour.
• Digital platforms, blockchain applications, and modern creditworthiness assessment tools.
• Using big data to sharpen forecasting accuracy and credit decision-making.

Module 10: Getting the Whole Bank Aligned

• Training employees and risk teams to evaluate and respond to credit risk consistently.
• Building a culture of continuous risk assessment across the institution.
• Coordinating between executive, administrative, and risk departments to keep strategy and daily operations aligned.