This course provides participants with the essential knowledge and skills to assess creditworthiness, mitigate risk, navigate credit policies and regulations, and advise clients on credit management practices.

Course Objectives:

At the end of this course, the participants should be able to

• Develop the skills to assess financial health by analyzing balance sheets, income statements, and other key financial documents.
• Create comprehensive credit policies, including setting credit terms, payment schedules, and credit limits based on risk assessments.
• Understand key credit-related laws, regulations, and compliance standards that govern credit transactions and debt collection.
• Coordinate and manage debt collection strategies, negotiate with clients, and resolve overdue debts while maintaining positive relationships.
• Advise clients on credit management practices, recommend strategies to mitigate credit risk, and design tailored credit solutions.
• Apply risk reduction techniques, including collateral management, credit insurance, and strategic planning to minimize financial losses.

Target Audience:

• Credit Consultants
• Financial Advisors and Analysts
• Banking and Financial Sector Employees
• Credit Risk Managers

• Financial Analysis & Credit Risk Assessment
• Credit Policy Development
• Client Advisory Expertise
• Risk Mitigation Skills
• Post-Credit Evaluation

Course Methodology:

This training course will be carried out through the use of best practices and the right combination of engaging and purposeful tools such as:

• Practical, relevant case studies
• Group activities and workshops
• Related role plays
• Experiential learning
• Brainstorming
• Stimulating mental activities
• Engaging team competitions
• Suitable training Videos
• Presentations
• Self–assessments
• Learning with Simulations and Games

Introduction to Credit and Credit Risk Management

• What is Credit?
  • Definition and types of credit (consumer credit, business credit, trade credit, etc.)
  • Importance of credit in the economy
• Understanding Credit Risk
  • Types of credit risk (default risk, market risk, liquidity risk)
  • Factors that affect credit risk
  • Risk assessment models and frameworks
• Overview of Credit Policies
  • Role of credit policies in risk management
  • Basic components of a credit policy

Financial Analysis for Credit Assessment

• Reading and Analyzing Financial Statements
  • Income statement, balance sheet, and cash flow statement analysis
  • Key financial ratios for credit assessment (liquidity, profitability, solvency, etc.)
• Assessing Creditworthiness
  • How to evaluate an individual or business’s ability to repay debt
  • Use of credit scores, credit reports, and financial documents
  • Tools for assessing financial health and credit risk

Credit Policies, Terms, and Legal Compliance

• Developing Credit Policies
  • Establishing credit terms and conditions
  • Setting credit limits, payment terms, and interest rates
• Legal and Regulatory Framework
  • Key regulations (e.g., SAMA Regulations)
  • Credit reporting agencies and their role

Credit Policies, Terms, and Legal Compliance -Cont'd-

• Compliance and Risk Mitigation
  • Legal considerations in the credit industry
  • Best practices for ensuring compliance and managing legal risks

Debt Collection and Recovery Strategies

• Debt Collection Techniques
  • Approaches for managing overdue accounts
  • Communication strategies with delinquent clients
  • Negotiation techniques for debt recovery
• Debt Recovery Methods
  • Understanding different recovery channels (e.g., in-house, external collection agencies)
  • Role of collateral in debt recovery
  • Legal tools for debt recovery (e.g. Bankruptcy proceedings)
• Client Relationship Management
  • How to maintain strong relationships while managing debt recovery
  • Balancing assertiveness with empathy in debt collection

Client Advisory and Risk Mitigation Techniques

• Consulting Clients on Credit Management
  • Assessing clients’ credit needs and advising on credit options
  • Creating customized credit solutions for clients
• Risk Mitigation Strategies
  • Risk reduction techniques (e.g., collateral, credit insurance, diversification)
  • Monitoring and managing credit exposure over time

• Building Long-Term Client Relationships

  • Providing ongoing support and guidance to clients
  • Developing loyalty and trust through effective credit advice