Risk-Based Underwriting Training Course

Participants can identify material credit and insurance risks using structured assessment methods.

• Risk taxonomy linking applicant, product, collateral, conduct and operational exposures
• Five Cs of Credit assessed through capacity, character and cash flow
• Insurance exposure analysis using peril, hazard, vulnerability and accumulation concepts
• PESTLE indicators incorporated into country, industry and macroeconomic risk assessment
• Fraud red flags separated from ordinary adverse selection indicators
• Materiality thresholds set for evidence depth, referrals and monitoring

Participants can evaluate the quality of underwriting evidence and interpret core financial risk indicators.

• Source reliability, recency and completeness tested before underwriting model input
• Financial statements reconciled to assess earnings quality, liquidity and solvency
• Debt service coverage ratio calculated from sustainable cash flow
• Loss runs, claims triangles and exposure schedules assessed for credibility
• Collateral valuation reports challenged for haircuts, enforceability and concentration
• Data lineage recorded for third-party reports, estimates and management representations

Participants can translate risk analysis into appropriate pricing, terms and acceptance decisions.

• Risk segmentation combines exposure attributes, behavioural indicators and loss experience
• Expected loss estimated from probability, exposure and loss-given-default components
• Frequency-severity analysis informs insurance pricing assumptions and deductibles
• Risk-adjusted return on capital compared against hurdle rates and limits
• Pricing adequacy tested against expenses, capital charges, reinsurance and margins
• Terms, covenants, deductibles and exclusions aligned with risk drivers

Participants can prepare a structured commercial credit assessment and lending recommendation.

• Borrower business models mapped to revenue drivers, costs and cash conversion
• Credit memorandum structure separates facts, analysis, mitigants and recommendation
• Base, downside and severe scenarios stress liquidity and debt repayment
• Loan-to-value and debt-service coverage covenants calibrated to asset volatility
• Guarantees, security packages and intercreditor terms assessed for enforceability
• Credit approvals document conditions precedent, monitoring triggers and renewal requirements

Participants can assess commercial insurance exposures and structure appropriate policy terms.

• Exposure basis verified using schedules, turnover, payroll, values and locations
• Policy wordings analysed for insuring clauses, exclusions, endorsements and definitions
• Deductibles, limits and sublimits structured to retain appropriate loss layers
• Accumulation analysis identifies correlated losses across locations, policies and reinsurance treaties
• Reinsurance facultative referrals prepared with exposure, terms and loss evidence
• Claims feedback converted into underwriting rules, appetite adjustments and pricing actions

Participants can monitor portfolio performance and identify emerging underwriting deterioration.

• Portfolio concentration measured by obligor, industry, geography, peril and tenor
• Risk appetite metrics reconciled with portfolio limits and underwriting authority
• Vintage analysis detects deterioration patterns in credit and insurance cohorts
• Early-warning indicators trigger reviews, covenant action and claims intervention
• Stress testing estimates capital, liquidity and earnings effects under adverse scenarios
• Portfolio reporting distinguishes new business performance from reserve development

Participants can apply governance controls that improve underwriting consistency and auditability.

• Basel Framework credit-risk principles connected to underwriting controls and documentation
• Own Risk and Solvency Assessment informs insurance risk appetite monitoring
• Segregation of duties separates origination, underwriting, approval and quality assurance
• File reviews test policy adherence, rationale quality and evidence sufficiency
• Model governance covers validation, overrides, change control and performance monitoring
• Conduct risk controls address fairness, disclosure, discrimination and conflicts

Participants can present well-supported underwriting decisions to approvers and referral committees.

• Decision trees structure acceptance, decline, referral and conditional approval choices
• Underwriting rationale distinguishes observed facts, assumptions, judgement and uncertainty
• Recommendation papers state exposure, pricing, mitigants, conditions and residual risk
• Exceptions recorded against appetite, authority, precedent and compensating controls
• Committee presentations answer challenge on data gaps, sensitivity and aggregation
• Decline communications preserve customer clarity, consistency and regulatory defensibility

Participants can establish post-bind controls and apply course methods to their own underwriting work.

• Post-bind monitoring plans specify covenants, inspections, reporting and trigger thresholds
• Renewal reviews compare actual experience with original underwriting assumptions
• Claims, arrears and covenant breaches routed through defined escalation protocols
• Underwriting performance dashboards track hit rates, loss ratios and overrides
• Root-cause analysis converts adverse outcomes into policy, pricing and process changes
• Personal application plan prioritises one underwriting control, metric and stakeholder commitment