Credit Risk is at the Core of Banking – Managing It Requires Structure, Process, and Discipline
Credit risk management is a cornerstone of the risk management framework in banks. An effective credit risk framework not only ensures compliance with regulatory requirements but also directly influences asset quality, capital strength, and overall profitability. Today’s challenges – from evolving regulatory standards and digital transformation to ESG considerations and market volatility – demand a proactive, integrated, and well-structured approach to credit risk.
Our services include:
- Assessment and enhancement of the bank’s credit risk framework, including policies, procedures, limits, and strategic direction.
- Design and implementation of credit assessment processes, incorporating both qualitative and quantitative factors, including ESG-related risk drivers.
- Improvement of credit classification and expected credit loss (ECL) calculation, ensuring alignment with IFRS 9 requirements, regulatory expectations, and proportionality principles.
- Development of monitoring and early warning systems, including the definition and automation of key risk indicators (KRI) and escalation procedures.
- Credit portfolio quality assessments, covering concentration analysis, sectoral and geographical exposure, and non-performing loan (NPL) diagnostics.
- Support in developing ICAAP credit risk modules, including internal methodologies for calculating capital requirements.
- Training programs for credit analysts, risk managers, control functions, and other relevant staff, with a focus on holistic risk understanding and data-driven decision-making.
Why is this important for your bank?
Weak credit risk management is the most common root cause of banking crises. Through well-defined criteria, consistent policy execution, high-quality analysis, and effective monitoring, a bank can significantly reduce its risk exposure, protect capital, and build long-term financial stability.
_
🔥 NEW!!!
_
OPEN PROGRAM SPRING/SUMMER 2025
Applications open until July 14th, 2025.
Applications are submitted directly via the Contact page by selecting the Credit Risk Program.
Program date: Thursday and Friday, July 24th & 25th, 2025, from 09:00 to 17:00
Location: In-person at Maglajska 1, Sarajevo – Center.
The program is intended for credit analysts, risk managers, control functions, sales teams, and all professionals involved in credit risk management or seeking to deepen their knowledge in this area. The number of participants is limited.
Individual investment BAM 720
Value for the Bank
- Enhanced credit portfolio quality – Trained staff are better equipped to identify early warning signs and assess credit risk, helping reduce non-performing exposures.
- Consistent application of credit policies – The program ensures uniform understanding and implementation of internal policies, reducing operational errors.
- Improved institution-wide risk management – Educated teams contribute to more accurate exposure assessments, better client classification, and appropriate provisioning.
- Regulatory compliance and supervisory alignment – The program covers key local and EU regulatory requirements and best practices, reducing reputational and compliance risk.
- Better integration of business and risk functions – Strengthens collaboration between front office, credit analysis, and risk management.
- Support for strategic decision-making – Higher quality input from credit risk teams improves capital planning and overall strategic direction.
Value for Employees
- Deeper understanding of the credit process – Participants gain insights into creditworthiness assessment, risk analysis, loan approval, and credit monitoring.
- Development of analytical and assessment skills – The program enhances capabilities in interpreting financial statements, identifying risk drivers, and making informed recommendations.
- Increased confidence in decision-making – Clearer knowledge of methodologies and criteria leads to greater precision and less hesitation in work.
- Better understanding of regulatory frameworks – Participants become familiar with both domestic and EU-level credit risk standards and obligations.
- Improved cross-functional communication – Employees better understand how their analyses support departments like legal, collections, and ALM.
- Career advancement opportunities – Knowledge of credit risk management is a key competency for progression into roles in risk, lending, and controlling.
