Minimizing and Managing Problem Loans

Minimizing and Managing Problem Loans

Learn to detect and evaluate early warning signs of problematic loans in order to take the appropriate actions to mitigate the contributing factors and protect the financial institution.

This course uses real-world examples to explore loan monitoring and management issues. First, participants examine the internal and external causes of problem loans, the steps they can take to prevent them from arising in the first place, and the "red flags" that may signal there is an issue. They are also introduced to our Minimizing and Managing Problem Loans Process, which outlines a step-by-step approach for preventing, managing, and monitoring problem loans within the framework of your organization's own policies and procedures. Next, participants learn to evaluate financial and nonfinancial red flags, and learn potential strategies for handling problem loans.

Upon completion, participants will be able to:

• Use a common model for identifying and working with problem loans, ensuring that all appropriate steps are taken on a timely basis
• Communicate with their managers to determine the most appropriate actions to minimize risks before proposing solutions to clients
• Schedule timely follow-up activities to ensure that agreements are kept, and appropriately escalate problem loans to the appropriate department if risk management efforts have been unsuccessful
• Document all communications and actions in the credit file to assist in collection efforts