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.
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
- 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
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