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CPEs:
24
Instructor:
Risk Reward Faculty
Level:
Intermediate
Tuition:
£2,995.00
Updated Portfolio Risk Management and Best Practices BSL014
Location: UK Europe EMEA GCC Time Zones
First Date: Jun 10 – 12 2025
Duration: 3 days
Programme Director: Risk Reward Faculty
All Dates & Locations
Venue Details
Experience the highly-interactive expert-led social learning through Virtual Classroom via Cisco WebEx from Risk Reward.
All our 2024 Live, on-site and Live Virtual Classroom events feature shared (or discrete) live chat between delegates and the expert, participate in topical surveys, polling questions, group exercises and case studies for a tried -and- true engaging and gratifying learning experience.
Need to bring this course in house, train your team or 1:1? Simply contact us for significant cost savings and dates best suited to meet your specific needs.
Agenda Highlights
Session 1: The Credit Sanctioning Process
Session 2: Understanding the SME Business Model
Session 3: Ratio Analysis
Session 4: Non-Financial Analysis
Session 5: Scoring Models
Session 6: The Portfolio Manager’s Toolbox
Session 7: Credit Analysis
Session 8: The Management of Risk
Session 9: Pricing & Required Return
Session 10: Capital Requirements & Regulations
Session 11: Stress Testing
Session 12: Reporting
Session 13: Summary, discussion, and Q&A
Overview
Portfolio risk management is the process of identifying, assessing, and mitigating the various risks associated with an investment portfolio. It involves implementing strategies to optimise the balance between risk and return, ensuring that the portfolio aligns with the investor’s financial goals and risk tolerance.
This course looks at the SME risk management area, focussing on the banking portfolio management issues and providing the guidance that will enable the participants to develop their careers in this area.
Looking at the assessment and scoring of such account together with the risk concentrations that are likely to emerge, in this practical course will assist firms in understanding the risk of SME lending as well as the way that the risk exposures should be managed and reviewed.
Who Should Attend
Designed for anyone involved with SME lending including relationship management, risk professionals and internal audit and control staff.
Additional Course Information
What Does It Cover?
Session 1: The Credit Sanctioning Process
- The need for money & Investment Readiness
- The lending process
- Risk and Risk management
- Cash and cash management
- Probable risk of default
- Probable loss on default
- Helping the SME to succeed
Case study/ exercise appropriate to the above
Session 2: Understanding the SME Business Model
- Resources and capabilities
- Sources of competitive advantage
- Value chain analysis
- Economy, Objectives, Strategy, Tactics – Most
- Adding value
- The option to sell
Case study/ exercise appropriate to the above
Session 3: Ratio Analysis
- Importance of Financial Analysis
- Trend Analysis
- Key Performance Indicators
- Financial Strength
- Liquidity
- Serviceability
- Working Capital Management & Asset Performance
- How would these be weighted to assess a portfolio?
Case study/ exercise appropriate to the above
Session 4: Non Financial Analysis
- The need for both Financial and non-financial analysis
- Real Business issues for SME’s
- Value Stream for SME’s
- Identification of critical success Factors
- Identification of Key Performance Indicators
- Credibility of Business Plans
- Credibility of Management
- Building this into a scoring system
Case study/ exercise appropriate to the above
Session 5: Scoring Models
- Weaknesses and strengths
- Building a model
- Model validation and assumptions
- What can the model achieve?
- How to identify linkages and concentrations
Session 6: The Portfolio Manager’s Toolbox
- SWOT
- STEEPL
- Boston Matrix
- Porters 5 Forces
- SMART
- BEST PRACTICE – DEBT
- INTANGABILIY – EQUITY
Case study/ exercise appropriate to the above
Session 7: Credit Analysis
- Theory & practice
- Systems, reviews, performance & monitoring
- Building and designing credit manuals
- Implementing and policing lending policy
- Allocating individual or department discretionary powers
- Report lines
- A & L Committee
- Strategic & Policy considerations
- Risk/ Reward considerations
- Global, book, sector and portion analysis
- Systemic analysis and risk.
Case study/ exercise appropriate to the above
Session 8: The Management of Risk
- What is portfolio risk management?
- How does this apply to SMEs?
- Managing risk, reports, exceptions, responsibilities
- Risk registers
- Limits
- Internal and staffing risks
- Stress testing
- Monitoring & control – A & L Committee
- Reports, limits, excesses
Case study/ exercise appropriate to the above
Session 9: Pricing & Required Return
- Pricing facilities and the SME
- Market segmentation
- Risk/reward
- Secured/unsecured
- Return on capital
- Liquidity
- Short & medium term
- Head office expectations
- Shareholder expectations
Case study/ exercise appropriate to the above
Session 10: Capital Requirements & Regulations
- Capital Requirements
- Basel II
- Basel 3
- Liquidity implications
- Other relevant capital rules
- Regulations
- EAD calculations
- LGD calculations
- PD calculations
- Use of ratings
- Internal and external data
- International rules
- National & regional rules
- Money laundering
- Other relevant Best Practices
Case study/ exercise appropriate to the above
Session 11: Stress Testing
- What are the key determinants of risk in a portfolio?
- How do they vary
- Regulatory requirements
- Rating migration modelling
- Scenario and stress modelling
- Regulatory constraints
Case study/ exercise appropriate to the above
Session 12: Reporting
- Developing key risk indicators
- Reporting to management
- Reporting to the Board
- Dealing with excesses
- When to act on default
- Consequences for retail bankers
Session 13: Summary, discussion, and Q&A
Learning Objectives
Delegates will gain specialist technical and behavioural knowledge, techniques and approaches, with practical applications in the real world, workplace, specifically:
- How to assess SME lending
- How to apply risk appetite modelling to SME lending
- How to identify risk concentrations
- How to apply stress testing requirements
- Key capital considerations
- Reporting SME portfolio risk
Delegates who complete the course will receive a Certificate with equivalent CPD/CPE credits via email; and for those who require an assessment as a demonstration of competency via training a 20 multiple-choice questions and answers quiz, remotely invigilated with results report and 1 resit, is available at no additional charge when requested at the time of reservation.
Social Learning & Methods
Highly interactive expert-led intensive presentation, Q&A, group real-time in-depth case studies, regulation and discussion supported by key principles and theory. The virtual learning platform uses safe, industry preferred encrypted Cisco WebEx to optimize live face-to-face visual interaction, discrete chat, for polling and quizzes.
(An invitation via email with access link is included for all participants.)
Registration
Updated Portfolio Risk Management and Best Practices
Course Fee
Apply 10% discount code RISK10 by December 15, 2024 at check-out
Course Fee (per person):
GBP £2,995.00 (+ UK VAT when applicable)
Get in touch and see how Risk Reward can help you
Our London and Miami teams are ready to listen carefully to your needs, take the brief, explore options, offer suggestions and help you in a professional and friendly manner.