Format: Live instructor-led online training via Zoom / Microsoft Teams

Introduction

The Credit Risk Management and Negotiation Skills Training course is designed to enhance the competencies of professionals working in credit control, debt recovery, and financial risk management. This training addresses the growing demand for effective credit risk analysis, loan assessment, debt collection, and negotiation skills in today’s dynamic financial environment. With increased regulatory requirements and credit exposure risks, organizations must build strong internal capacities to manage financial losses and ensure customer accountability.

This highly practical program empowers participants to evaluate the creditworthiness of customers, understand key financial indicators, apply credit scoring models, and establish effective credit policies and procedures. The course also emphasizes the role of customer relationship management, legal compliance, and dispute resolution to strengthen financial operations and reduce bad debts. Through real-life simulations, participants will explore the strategies for portfolio risk management, credit monitoring, and delinquency control.

An essential component of the training is developing negotiation skills for credit professionals. Effective negotiation is vital in recovering outstanding payments, restructuring loans, and maintaining customer relationships without compromising the organization’s financial position. Participants will learn how to handle difficult conversations, respond to objections, and close repayment agreements that are both enforceable and realistic.

This training is ideal for finance, sales, and credit control teams that want to enhance their ability to make sound credit decisions while fostering sustainable customer relationships. By applying modern credit risk management tools and negotiation techniques, organizations can significantly reduce default rates and improve cash flow stability.

Course Objectives

1. Understand the fundamentals of credit risk and its impact on business operations.
2. Analyze customer creditworthiness using financial ratios and credit scoring models.
3. Develop and implement effective credit control policies and procedures.
4. Identify early warning signs of credit default and take preventive measures.
5. Understand the legal framework of credit contracts and debt collection.
6. Improve negotiation skills for debt recovery and credit restructuring.
7. Handle challenging customer situations professionally and ethically.
8. Integrate credit risk management with business strategy and performance goals.
9. Utilize tools and software for credit risk evaluation and monitoring.
10. Apply real-life case studies for practical understanding and application.

Organization Benefits

1. Reduced bad debts and non-performing loans.
2. Improved customer credit evaluation and monitoring processes.
3. Enhanced staff capacity in handling high-risk credit accounts.
4. Strengthened negotiation skills for better collection outcomes.
5. Streamlined credit policy implementation across departments.
6. Minimized legal disputes through proactive credit controls.
7. Increased recovery of overdue accounts and improved cash flow.
8. Better alignment of credit risk management with organizational objectives.
9. Enhanced internal controls and audit readiness.
10. Improved reputation and trust with clients and financial institutions.

Target Participants

• Credit and Risk Officers
• Debt Recovery Officers
• Finance and Accounts Professionals
• Loan Officers and Relationship Managers
• Credit Control and Collections Staff
• Sales and Marketing Executives
• Internal Auditors and Compliance Officers
• Legal and Contract Managers
• Business Owners and Entrepreneurs
• Public and NGO Financial Management Teams

Course Outline

Module 1: Fundamentals of Credit Risk Management

1. Definition, types, and causes of credit risk
2. The credit cycle and default probability
3. Credit policy development and risk appetite
4. Introduction to credit scoring models and ratings
5. Regulatory and compliance frameworks (e.g., IFRS 9, Basel III)
6. Case Study: Credit risk failure.

Module 2: Credit Assessment and Customer Evaluation

1. Understanding customer financial statements
2. Key financial ratios for credit assessment
3. Evaluating personal vs business credit
4. Using credit bureaus and third-party data
5. Establishing customer credit limits
6. Case Study: Credit approval process

Module 3: Negotiation Techniques for Credit Professionals

1. The principles of effective negotiation
2. Planning and preparing for debt negotiations
3. Communication and persuasion strategies
4. Handling objections and tough clients
5. Closing repayment agreements successfully
6. Case Study: Successful loan restructuring

Module 4: Debt Collection and Recovery Strategies

1. Collection strategies: proactive and reactive
2. Legal and ethical debt recovery practices
3. Managing overdue accounts and delinquencies
4. Third-party collections and outsourcing
5. Settlement agreements and restructuring plans
6. Case Study: Recovery of long-term overdue account

Module 5: Credit Portfolio and Risk Monitoring

1. Portfolio risk analysis and diversification
2. Credit exposure and concentration risk
3. Monitoring tools and KPIs for credit risk
4. Early warning systems and action plans
5. Internal audits and reporting frameworks
6. Case Study: Portfolio risk analysis in a government-funded program

General Information

1. Customized Training: All our courses can be tailored to meet the specific needs of participants.
2. Language Proficiency: Participants should have a good command of the English language.
3. Comprehensive Learning: Our training includes well-structured presentations, practical exercises, web-based tutorials, and collaborative group work. Our facilitators are seasoned experts with over a decade of experience.
4. Certification: Upon successful completion of training, participants will receive a certificate from Foscore Development Center (FDC-K).
5. Training Locations: Training sessions are conducted at Foscore Development Center (FDC-K) centers. We also offer options for in-house and online training, customized to the client's schedule.
6. Flexible Duration: Course durations are adaptable, and content can be adjusted to fit the required number of days.
7. Onsite Training Inclusions: The course fee for onsite training covers facilitation, training materials, two coffee breaks, a buffet lunch, and a Certificate of Successful Completion. Participants are responsible for their travel expenses, airport transfers, visa applications, dinners, health/accident insurance, and personal expenses.
8. Additional Services: Accommodation, pickup services, freight booking, and visa processing arrangements are available upon request at discounted rates.
9. Equipment: Tablets and laptops can be provided to participants at an additional cost.
10. Post-Training Support: We offer one year of free consultation and coaching after the course.
11. Group Discounts: Register as a group of more than two and enjoy a discount ranging from 10% to 50%.
12. Payment Terms: Payment should be made before the commencement of the training or as mutually agreed upon, to the Foscore Development Center account. This ensures better preparation for your training.
13. Contact Us: For any inquiries, please reach out to us at training@fdc-k.org or call us at +254712260031.
14. Website: Visit our website at www.fdc-k.org for more information.