CLOSED – Credit Risk Management Tools: BRR & FRR – May 27-28, 2016

Date: May 27 -28, 2016 (Fri. –Sat))
Venue: Gov. Licaros Hall, RBAP Bldg, Intramuros, Manila
Time: 8:30am to 5:00pm

Resource Person:

Ms. Celenita V. Francisco , CPA
Bank Executive (Credit Risk Officer),
Bank Consultant and Trainer

Seminar Fee:

1. Early bird – P4,500 (on or before April 29, 2016)
2. Regular Rate – P4,800 (After April 29, 2016)
3. Non-Member/Delinquent – P5,760
Mode of Payment
• P2,400.00 – Non-Refundable commitment fee per participant.
• Account Name RBRDFI LBP – Intramuros Branch
• Savings Account No. 0012-1046-26).
• Proof of payment fax to (02) 527-2980.
• Check payments, should be payable to (RBRDFI).

Seminar Methodologies

Lecture, Discussions and Workshop. The lecture will provide the requisite concepts on the topic while the workshop will provide an avenue to apply the concepts learned.

Expected Participants

President, BOD members, Senior & Middle Level Officers, Credit and Loans Head and Appraisal Department Heads and Business Loan/Business Development Officer.

I. Objectives
A. Exposures are appropriately identified, measured, monitored and controlled
B. To enhance the competency of loan officers in evaluating SME/ business loans by Introducing Internal Credit Risk Rating System using CAMP Analysis of Borrowers Risk Rating and Facility Risk Rating (FRR).

C. To provide tools of credit risk management of banks by demonstrating a sample of BRR scorecard applicable to rice production and Credit Risk Rating Scorecard applicable to other loans/borrowers in order comply with risk-based regulatory supervision by BSP.

D. To guide participants on how to “institutionalize” the use of the
Borrower Risk Rating and the Credit Risk Rating Systems in their
respective banks and to provide instruction on how to prepare a User’s Manual.

Course Outline

Part 1 – To inform the participants of what are the relevant regulations that will impact:
• the credit risk management of rural banks
• current practices of banks which are anathema to credit risk management
• what banks are doing to improve credit risk management;
• and what BSP expects from rural banks.

Part 2 – To introduce the CAMP Analysis of the Borrower Risk Rating System and the Facility Risk Rating System which is a scorecard applicable to SME businesses with at least 3 years existence and have financial statements for three (3) consecutive years.

a) What is Borrower Risk Rating (BRR)?
b)What is Facility Risk Rating?
c)What is CAMP Analysis?
d)Requirements to use BRR effectively.
e)Skills required evaluating loans using CAMP

Analysis. (Working knowledge of Financial Statements and Financial Analysis, Interview Techniques to gather financial information and Validation of Financial Information and Performance).

– There will be cases, which will allow participants to experience rating a borrower using CAMP Analysis.
-Based on the CAMP Analysis, a demonstration on how the BRR scorecard could be used in evaluating rice production projects/applications

Part 3 – To share a sample Credit Risk Rating (CRR) Scorecard using 3 C’s of Credit (Character, Capital and Capacity) to assess credit risk. Each rating parameter will be explained.

Concepts on the 5 C’s of Credit will be discussed. It has been observed that the CRR Scorecard has a wider applicability and use for most target clients of RBs.

Using a case study, participants will actually rate a borrower using the CRR

Part 4 –To give practical instruction on what are the steps in
“Institutionalizing an Internal Credit Risk Rating System” in a rural bank. This will involve creating an environment conducive to credit risk management starting from the Board: an organization responsive to a sound credit risk management; a sound credit granting process, maintenance of an appropriate credit administration, measurement and monitoring process; and maintaining an appropriate credit control process.

To guide participants in developing a User’s Manual for the BRR and the CRR Scorecards. BSP examiners require a User’s Manual before it considers a borrower’s/credit risk rating scorecard acceptable.

Download the Confirmation Sheet in PDF