Non-Performing Loans Management Training Course

Participants can establish early-warning monitoring and escalate deteriorating loans before default.

• Early-warning indicator frameworks combining behavioural, financial and qualitative signals
• Watchlist entry criteria, review frequency and exit decision rules
• Covenant breach analysis for liquidity, leverage, coverage and reporting obligations
• Monitoring payment patterns, account turnover and unauthorised overdraft utilisation
• Borrower contact protocols following missed payments and adverse information
• Escalation matrices linking risk triggers to accountable decision makers
• Documenting warning signs, action owners, deadlines and follow-up evidence

Participants can segment NPL inventories and assign proportionate case-management strategies.

• Segmenting exposures by borrower viability, security position and balance size
• Treatment paths: cure, restructure, recover, sell or write off
• Prioritising cases through exposure, ageing, loss severity and actionability
• Queue-management rules for high-volume retail collections portfolios
• Case allocation models by expertise, geography, industry and legal complexity
• Distinguishing standardised collections from intensive workout management
• Portfolio heat maps showing migration, concentration and recovery bottlenecks

Participants can assess repayment capacity and determine whether a borrower is viable.

• Three-statement analysis focused on liquidity, debt service and cash conversion
• 13-week rolling cash forecast built from receipts, payroll and supplier data
• Debt-service coverage ratio calculation under base and stressed assumptions
• Normalising earnings for exceptional income, owner withdrawals and non-recurring costs
• Assessing management quality, business model resilience and stakeholder support
• Viability tests distinguishing temporary distress from structural insolvency
• Information request lists for SME, corporate and property borrowers

Participants can connect credit deterioration and workout evidence to IFRS 9 impairment decisions.

• IFRS 9 Stage 1, Stage 2 and Stage 3 classification
• Significant increase in credit risk indicators and rebuttable presumptions
• Expected credit loss components: probability, exposure and loss severity
• Forward-looking scenarios, macroeconomic overlays and management judgement documentation
• Discounted cash-flow recovery estimates for individually assessed Stage 3 exposures
• Interest revenue recognition on gross and net carrying amounts
• Write-off triggers, recoveries after write-off and audit-trail requirements

Participants can structure and monitor borrower concessions that support viable rehabilitation.

• Forbearance measures: maturity extension, payment holiday, rate reduction and refinancing
• Assessing concession need against commercially sustainable repayment capacity
• Restructuring term sheets covering cash sweeps, covenants and reporting requirements
• Affordability analysis for retail borrowers using verified income and expenditure
• Restructured loan probation periods, cure criteria and redefault monitoring
• Avoiding evergreening through independent challenge and evidence-based approvals
• Coordinating relationship managers, workout teams, legal counsel and credit committees

Participants can evaluate security coverage and plan collateral realisation actions.

• Security review: perfection, ranking, enforceability and insurance status
• Loan-to-value analysis using current valuation and realisation haircuts
• Independent valuation instructions for property, plant, inventory and receivables
• Guarantee assessment covering capacity, validity, demand conditions and recoverability
• Collateral monitoring triggers for market decline, damage and unauthorised disposal
• Enforcement sequencing across primary security, guarantees and unsecured claims
• Recovery estimates incorporating costs, timing, taxes and forced-sale discounts

Participants can select and govern recovery actions for non-viable or uncooperative borrowers.

• Collections strategies matched to delinquency stage, customer segment and balance
• Promise-to-pay monitoring, broken-arrangement treatment and contact documentation
• Negotiated settlement analysis using net present value and recovery certainty
• Legal recovery pathways: demand, litigation, insolvency and security enforcement
• Insolvency stakeholder mapping for administrators, creditors and guarantors
• NPL sale preparation: data tape, bid process and servicing arrangements
• Decision trees comparing enforcement costs, duration, reputational risk and recoveries

Participants can design governance controls and reporting for accountable NPL management.

• Three-lines model responsibilities for lending, workout, risk and internal audit
• Delegated authorities for restructures, settlements, write-offs and legal actions
• Credit committee packs supported by evidence, challenge and recorded decisions
• Key risk indicators: NPL ratio, cure rate, roll rate and coverage
• Recovery dashboards tracking cash collections, legal milestones and case ageing
• File review checklists testing approvals, valuations, contact records and impairment evidence
• Conduct-risk controls for vulnerable customers, complaints and fair treatment

Participants can translate portfolio findings into a practical NPL improvement plan.

• Diagnosing portfolio weaknesses from arrears, segmentation, impairment and recovery evidence
• Setting target operating metrics for cures, recoveries, ageing and redefaults
• Prioritising remediation actions using impact, urgency, effort and control gaps
• Assigning action owners, milestones, dependencies and escalation thresholds
• Building management information packs for monthly NPL governance meetings
• Testing action plans against adverse economic and collateral-value scenarios
• Personal application plan for immediate workplace implementation and follow-up