CMTP MODULE TWO

 

The CMTP module 2 is aimed at both credit and relationship management teams—all those involved in business development and assessment of credit proposals. It aims to give them a solid foundation in the identification, assessment and management of credit risks, essentially those factors contributing to the probability of default under Basel II and III. It also deals with facility structuring and so (if for example, combined with the Financial Institution’s policies on security taking and valuation) could as well contribute to the assessment of exposure default and loss given default.

 

COURSE OBJECTIVES

Learners under CMTP module 2 will be able to:

  • Understand how to start, operate and manage a personal or group enterprise business.
  • Understand how to interpret companies’ financial statements before making lending decisions
  • Understand the role of credit risk management
  • Understand cash flow forecasting and cash flow modelling
  • Explain the techniques that can be employed to manage working capital and improve efficiencies.
  • Identify the risks in working capital and quickly close the gaps
  • Explain the business environment and the industry a potential client operates in from a macro level and appreciate the specific risks associated with it
  • Review a company from a strategic perspective as well as management competencies.
  • Make a lend or not to lend decision based on the viability of a company’s business as well as the industry’s potential.
  • Explain the different ways of analyzing competition
  • Explain how to develop strategies based on competitive analysis
  • Give examples to ensure understanding of the techniques.

 

The programme units teach the technical skills (such as cash flow analysis) needed to become proficient in this area. The material places strong emphasis on qualitative analysis of a customer’s products, the market in which it operates and the company’s management expertise, as well as specific quantitative analysis methods.

 

CORE COMPETENCE GUIDELINES

UNIT 1         INTERMEDIATE ENTREPRENEURSHIP
6.2.1 Basic concepts of entrepreneurship
6.2.2 The Entrepreneur
6.2.3 Creativity and Innovation
6.2.4 Starting a new business
6.2.5 Managing the Enterprise
6.2.6 Business management
6.2.7 Developing a Business Plan
6.2.8 Communication and Information Technology
6.2.9 Driving entrepreneurship to greatness
UNIT 2 ESSENTIALS OF CREDIT RISK ANALYSIS
7.2.1 The new credit environment
7.2.2 The Foundations of Credit Risk Analysis
7.2.3 The Role of Credit Risk Management
UNIT 3 FINANCIAL RISK ANALYSIS
8.2.1 Ratio Analysis
8.2.2 Cash flow Analysis and Cash Flow Dynamics
8.2.3 Working Capital
8.2.4 Cash Flow Forecasting and Modelling
8.1.5 On the job orientation
UNIT 4 BUSINESS AND INDUSTRY RISK ANALYSIS
9.2.1 Industry and Competitive Analysis
9.2.2 Company Risks
UNIT 5 CREDIT REPORT WRITING
10.2.1 Writing a credit report
UNIT 6 ESSENTIALS  OF LOAN ADMINISTRATION
11.2.1 Foundation of Credit Administration
11.2.2 Loan documentation

 

WHO SHOULD ATTEND

  • Business Development Teams
  • Credit Officers
  • Credit Analysts
  • Loan Officers

OTHER PRE-REQUISITES

  • CMTP Module One Course Certificate
  • Business degree from a recognized University
  • Associate (Advanced Diploma) of Kenya Institute of Bankers
  • KASNEB Certified Credit Professionals

 

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