Financial Products & Associated Risk Management

Problem Credit Management - Part 2


This eCourse consists of two modules. Module 1 focuses on early stage problem credit management, which encompasses customers classified as potential problem customers and problem (early stage) customers. It covers the identification and assessment of customers showing cause for concern as a result of them exhibiting one or more early warning signs and describes the high level approaches that can be adopted for such customers. This is followed by more detailed coverage of account strategies and plans and their implementation. Finally, the tutorial looks at the management processes applied at customer and portfolio level as well as the requirements for the transfer of customers to the recovery team if they are not rehabilitated or exited.

Module 2 focuses on late stage problem credit management. This encompasses customers classified as problem (late stage) and nonperforming as well as defaulted customers. The first topic covers the actions to be taken following transfer of ownership to the recovery team, possible account strategies and the factors that influence the assessment, and the account planning and implementation process. The second topic describes the various account strategies – including providing support, restructuring, and debt forgiveness – in more detail. The final topic sets out some of the decisions, credit and noncredit, that must be made during the recovery process and the factors that influence decision-making.


On completion of this course, you will be able to:
- Recognize the process for identifying potential problem credits and the importance of data collection, collation, and interpretation in assessing such customers
- Identify the high level approaches that can be adopted for managing early state problem credits and the various elements that might be included in an account plan
- Differentiate between the customer-level and portfolio-level processes for managing problem credits and identify the role of recovery management
- Recognize the advantages of transferring ownership of late stage problem credits to the recovery team and the actions required immediately following transfer
- Identify the account strategies that may be adopted for managing late stage problem credit customers
- Recognize the types of decision that may need to be made by recovery staff


Module 1: Problem Credit Management - Early Stage Problem Credits
Topic One: Identifying Potential Problem Credits
Topic Two: Account Strategy & Planning
Topic Three: Managing Early Stage Problem Credits

Module 2: Problem Credit Management - Late Stage Problem Credits
Topic One: Overview of Late Stage Problem Credit Management
Topic Two: Account Strategies
Topic Three: Decision-Making for Problem Credits


Relevant Subject
SFC:2.00, PWMA:2.00
Staff of Corporate Member: HK$610
Non-Member: HK$890
All Member: HK$610