Quality training can be instrumental in reducing risk at the point of origination,
and is particularly effective when extended to management not only in risk related
positions, but also to the many functions which routinely interact with risk.
As the recent credit crisis clearly demonstrates, the risk-reward balance can be
upset by actions in and outside of the origination process. And rapid turnover of
management often results in decision makers who have not experienced a full economic
cycle, and therefore likely have not witnessed an economic downturn.
Training helps management and their teams monitor and respond to changing situations
through instruction on such topics as:
Sound lending principals
Management information systems which identify coming trends
High volume processing
Credit line management
Collection capacity planning and strategy
Operational Risk, the new hot button
Regulatory environment, an even hotter button.
Extending these concepts outside of the risk management function provides a better
appreciation for the longer term impact of risk, relieving pressure for decision
making that accentuates short term gains.