Portfolio management

Credit Portfolio Management

Actively Managing The Bank’s Credit Portfolios

During this Credit Portfolio Management training course we explore the various aspects of actively managing the bank’s credit portfolios. The training will provide an overview of various loan pricing parameters and profitability measures applied during the loan origination process. It will review competing financial constraints and how to analyse existing loan portfolios. The course will outline credit risk hedge and capital relief techniques to actively manage the risk and return profile of the book. The training will round up with a summary of sound practices addressing organisational structures, objectives and the importance of an active Credit Portfolio Management function in financial institutions.

By the end of the course, participants will be able to:

  • Understand various assumptions in modelling credit risk

  • Understand RWA and EL calculation

  • Understand competing regulatory and economic capital, liquidity and leverage ratios constraints

  • Understand pricing and profitability measures for new lending transactions including the impact of the new IFRS9 accounting requirements

  • Understand loan valuation methodology

  • Consider key portfolio data and reporting requests

  • Analyse corporate loan portfolios, define portfolio strategies and set risk appetite frameworks

  • Understand credit hedge / capital relief instruments (CDS, securitisations and loan sales) and how to manage P&L volatility

  • Assess compliance, regulatory and operational standards when running a CPM function


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