Introduction
Credit Risk Scoring and Loan Underwriting are essential capabilities for any financial institution seeking to balance risk and growth in its lending operations. As lending expands to include more underserved and unbanked populations, financial institutions must adopt accurate, scalable, and data-driven methods to evaluate creditworthiness. This course empowers professionals with the analytical and strategic skills necessary to implement effective credit risk management frameworks and underwriting procedures that align with both institutional goals and regulatory requirements.

Participants will gain knowledge on both traditional and modern credit scoring techniques, including the use of alternative data and digital platforms. The course also covers how to evaluate borrower financial profiles, design effective credit scoring systems, and conduct underwriting that considers risk-adjusted returns. The training also emphasizes automation trends, portfolio risk analytics, and fraud prevention mechanisms.

In a fast-evolving lending landscape, mastering credit risk scoring and underwriting improves loan quality, promotes financial inclusion, and enhances institutional resilience. This course is suitable for banks, MFIs, fintech lenders, cooperatives, and any organization involved in credit provision, looking to improve their credit processes using global best practices.

Course Objectives
• Understand the principles and importance of credit risk and underwriting
• Assess borrower profiles using financial and non-financial indicators
• Design and evaluate credit scoring models
• Implement robust underwriting frameworks for personal, SME, and agricultural loans
• Integrate digital tools and platforms into credit evaluation
• Apply regulatory and compliance frameworks to credit operations
• Identify and manage credit fraud and default risks
• Use alternative data for inclusive and accurate scoring
• Align credit policy with institutional risk appetite
• Monitor portfolio performance and adjust credit strategy accordingly

Organizational Benefits
• Reduces default rates through structured risk analysis
• Improves efficiency in loan decision-making processes
• Enhances regulatory compliance and audit readiness
• Builds internal capacity for modern credit evaluation systems
• Increases consistency in underwriting decisions
• Promotes innovation through fintech and digital partnerships
• Strengthens portfolio management and recovery planning
• Supports expansion into underserved market segments
• Enhances risk-adjusted pricing and profitability
• Promotes fair and transparent credit practices

Target Participants
• Credit officers and loan analysts
• Risk managers and portfolio analysts
• Relationship managers and credit committee members
• Compliance officers and auditors
• Digital lending and fintech specialists
• Financial institutions and microfinance staff
• SACCO and cooperative credit teams
• Government lending agencies and policy advisors
• Central bank and regulatory staff
• Financial inclusion and SME development practitioners

Course Outline

Module 1: Introduction to Credit Risk and Underwriting
• Importance of credit risk in lending institutions
• Components of the underwriting process
• Relationship between credit risk and institutional strategy
• Traditional versus digital underwriting approaches
• Credit lifecycle and risk touchpoints
• Case study: Institutional credit risk failure and turnaround

Module 2: Borrower Risk Assessment
• Key borrower assessment frameworks (5Cs and 6Cs)
• Evaluating borrower character, capacity, and conditions
• Reviewing income, cash flow, and financial statements
• Collateral analysis and guarantees
• Risk scoring from qualitative and quantitative data
• Case study: Evaluating a small business credit application

Module 3: Credit Scoring Models
• Types of scoring models: statistical, AI-based, hybrid
• Credit scorecard components and weightings
• Building and calibrating a basic scoring model
• Data quality and reliability in score development
• Risk grades, cut-off points, and override policies
• Case study: Developing a scorecard for rural lending

Module 4: Loan Underwriting Process
• Steps in the loan underwriting process
• Key documentation and credit information
• Risk-adjusted pricing and credit limits
• Approval hierarchies and exception management
• Underwriting different loan types (SME, personal, agricultural)
• Case study: Underwriting a working capital loan

Module 5: Alternative Data and Digital Credit Scoring
• Mobile money, utility, and social data for credit scoring
• Onboarding and remote KYC for digital lending
• Role of APIs and data aggregators
• Ethical considerations in using alternative data
• AI and machine learning in credit scoring
• Case study: Use of mobile data in micro-lending

Module 6: Fraud Detection and Red Flags in Lending
• Common forms of credit and identity fraud
• Behavioral and financial red flags in applications
• Internal control systems to detect fraud
• Real-time fraud detection in digital platforms
• Risk-based customer verification techniques
• Case study: Detecting fraud in an SME credit request

Module 7: ESG Factors in Credit Assessment
• Environmental, social, and governance (ESG) risks in credit
• ESG-related lending policies and procedures
• Incorporating ESG in risk scoring
• Climate risk and industry-specific exposure
• Sustainability-linked lending products
• Case study: Green loan evaluation in agriculture

Module 8: Credit Portfolio Monitoring and Management
• Key portfolio metrics and performance indicators
• Early warning systems and borrower follow-up
• Segmenting portfolio risk by sector and product
• Restructuring and recovery planning
• NPL management and write-off strategies
• Case study: Credit portfolio review and stress testing

Module 9: Regulatory and Compliance Frameworks
• Key regulatory frameworks (Basel II/III, IFRS 9)
• Central bank credit guidelines and reporting requirements
• Role of credit bureaus and data sharing
• Credit documentation and audit trails
• Consumer protection in credit markets
• Case study: Compliance breach in underwriting

Module 10: Fintech and Innovation in Credit Risk
• Fintech models and embedded credit platforms
• Lending-as-a-service and API-enabled credit scoring
• Cross-border credit and remittance-linked lending
• Blockchain and smart contracts in lending
• Collaboration with startups and scoring solution providers
• Case study: Partnering with a fintech to launch mobile loans

Module 11: Credit Policy and Procedure Development
• Structure and elements of a credit policy document
• Setting thresholds and borrower eligibility criteria
• Delegated authority and credit decision levels
• Integrating digital processes and internal controls
• Policy review, audit, and update mechanisms
• Case study: Credit policy alignment with digital strategy

Module 12: Simulation and Capstone Practicum
• Reviewing real loan files and client profiles
• Simulated credit scoring and approval workflow
• Portfolio stress test and credit committee exercise
• Designing a mini scorecard for a loan product
• Creating an action plan for underwriting improvements
• Case study: Full-cycle loan assessment and approval

Essential Information

1. Our courses are customizable to suit the specific needs of participants.
2. Participants are required to have proficiency in the English language.
3. Our training sessions feature comprehensive guidance through presentations, practical exercises, web-based tutorials, and collaborative group activities. Our facilitators boast extensive expertise, each with over a decade of experience.
4. Upon fulfilling the training requirements, participants will receive a prestigious Global King Project Management certificate.
5. Training sessions are conducted at various Global King Project Management Centers, including locations in Nairobi, Mombasa, Kigali, Dubai, Lagos, and others.
6. Organizations sending more than two participants from the same entity are eligible for a generous 20% discount.
7. The duration of our courses is adaptable, and the curriculum can be adjusted to accommodate any number of days.
8. To ensure seamless preparation, payment is expected before the commencement of training, facilitated through the Global King Project Management account.
9. For inquiries, reach out to us via email at training@globalkingprojectmanagement.org or by phone at +254 114 830 889.
10. Additional amenities such as tablets and laptops are available upon request for an extra fee. 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 arranging and covering their travel expenses, including airport transfers, visa applications, dinners, health insurance, and any other personal expenses.