BankerCollege

Right or wrong, credit policy is the organization’s rule book for its credit risk management strategy, and it also reflects the organization’s credit culture.  Both the market and the regulatory agencies expect the credit policy to be accurate, current, and succinct so that both line and credit have unambiguous and clear direction on how to identify, evaluate, underwrite, approve, book and monitor creditworthy clients.

A well-crafted credit policy:

• Focuses the organization—everyone on the same page
• Reduces organizational conflict and confusion—priorities
• Minimizes need for rigid controls
• Supports commitment to the organizational vision and mission

Areas to be discussed include:

• Basic topics and contents of credit policy
• Content expectations of regulatory agencies
• Tips on how to write credit policy
• Examples of typical credit policy guidance
• Credit policy standard format
• Policy exceptions and their role in credit risk management
• Indicators of possible need for revision of credit policy

Participants will learn how to diagnose their own credit policies to identify any gaps, and if so, how to write practical and understandable policies that meet regulatory expectations for content.  Attendees will be able to implement and maintain the processes and procedures needed to ensure that their policies are kept current and accurate, are monitored for compliance with them by means of tracking exceptions to policies and resolving the reasons for the deviations, and are reviewed and approved annually by their boards of directors.