Description
Course Description:
The Salary loan/personal loan business helps cash-strap individuals and small businesses cope with their financial challenges. BSP recognizes the roles of banks and other financial institutions in helping individuals or small businesses manage their cash flows provided these are conducted under sound credit standards and fair practices.
Internal auditors help companies accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance processes.
This Training Program will provide the participants, primarily the so-called “Self-Assessment Functions” or “Control Functions”, i.e., bank auditors, risk management practitioners, compliance testing officers, with the body of knowledge (BOK) relative to the Unsecured Lending, i.e., Salary Loans, Personal Loans, that could help these practitioners in carrying out meaningful audits, risk management reviews, and compliance testing, respectively.
On the other hand, this program could also provide operational management with an understanding of how the Bank’s “control functions” would evaluate the Business Unit’s (BU) processes for the achievement of the bank’s credit objectives, such as the following areas of the BU (a)governance for ensuring effective challenge on credit risk for unsecured lending (Personal Loans, Salary Loans); (b) portfolio review controls, including compliance with Unsecured Lending Policy and the continuous upgrading of the quality of unsecured lending portfolio, (c)effective risk management and risk mitigation while increasing the risk assets; (d)managing the impact on the bank’s regulatory reporting (e.g., credit risk weighted assets and capital charge, impairment loss monitoring, and more).
This Training Program will provide the internal auditing practitioners, in particular, with the body of knowledge and a proposed holistic approach that could guide Auditors towards providing an independent and objective internal audit assessment of risk and controls, governance process, risk management reviews as well as the business unit’s risk and control self-assessment pertaining to the Bank’s unsecured lending (Personal loans, Salary loans).
This Training Program will also provide a venue for workshop/group discussions in order to facilitate the learning effectiveness for participants.
Course Outline:
I. Understanding the Salary Loan Business, Products, Business Objectives and Core Processes
a. Strategic Thrust for Salary Loan Business
b. Product Definition and Features
c. Key Business Objectives and Top Risk
d. Core Processes
II. Governance Framework Organizational structures
a. Board of Directors
b. Senior Management Committee
c. Operational Management
III. Three Lines of Defense
IV. Internal Control Framework
V. Auditor’s Preliminary Assessment & Audit Strategy
VI. The Audit Program Guides Development
VII. Audit Results
VIII. Reporting of Audit Results to the Audit Committee and Discussion with Senior Management
a. Advanced Reporting of High-Risk Issues
b. Contents of the Executive Summary
IX. Audit Issues Follow-through / Monitorin
X. Overall Audit Assessment and Rating
Schedule/s and Venue:
September 7, 2019; 8:30 A.M. to 5:00 P.M.
Dusit Thani Manila, Ayala Center, Makati City