Description
Course Description:
An “Institutional loan” or “Commercial Loan” is a debt-based funding agreement between a business enterprise and a Bank or Financial Institution (FI). This type of loan may either be secured or unsecured, for short term or long-term maturities, and may include working capital advances, term business loans, project financing, trade financing, developmental loan, and in certain cases, may include loans for SMEs.
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 Institutional Lending or Commercial Lending business 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 a consciously designed portfolio in terms of industry exposure and maturities, with effective challenge on credit risk taking; (b) portfolio review controls including the post-verification of the debtor’s use of lending proceeds, overall compliance the bank’s lending policy, debtor’s compliance with default clauses, and continuous upgrading of the quality of loan portfolio, (c)effective risk management and risk mitigation while increasing the risk assets with a comfortable margin for contingencies, and (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 on the Bank’s Institutional Lending or Commercial Lending.
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 Institutional Lending Business, Products, Business Objectives and Core Processes.
a. Strategic Thrust for Institutional (Commercial) Lending Business
b. Product Definition and Features
c. Key Business Objectives and Top Risks
d. Core Processes
II. Governance Framework
a. Board of Directors
b. Senior Management
III. Three Lines of Defense
IV. The Key Risks and Controls Identification, Assessment, and Monitoring and Examples of Audit Issues
a. Indicators under the different elements of the following Assessment Frameworks
b. Corresponding Audit Issues Commonly Noted
V. Preliminary Assessment and Audit Strategy Formulation
VI. The Audit Program Guides Development
VII. Audit Results
a. Evaluation of the Controls, Residual Risks, and Audit Issues
b. Analysis of Opportunities for Improvement
c. Assessment of Management’s Response/Action
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/Monitoring
X. Overall Audit Assessment and Rating
Schedule/s and Venue:
July 6 & 13, 2019; 8:30 A.M. to 5:00 P.M.
Dusit Thani Manila, Ayala Center, Makati City