Training Course Syllabus:

Conducting a Loan Concentration Audit

Objectives of the Presentation

• Review management´s concentration assessments


• Evaluate the adequacy of the risk management process to detect concentrations


• Review board and management concentrations oversight related to:
  
  
  
  • Portfolio management
  
  
  • Portfolio stress testing and sensitivity analysis
  
  
  • Credit risk review function
  
  
  • Market analysis
  
  
  • Assessment of capital adequacy
  
  
  • Adequacy of management information systems
  
  
  
  
• Evaluate the status of supervisory oversight of concentrations

Why Should you Attend

Loan concentrations must be properly monitored, managed and supported by adequate capital. When market and economic conditions are improving, concentrations can result in significant profit improvements for institutions. When conditions deteriorate, impairments and losses begin to surface. Market demand results in loan concentrations that management and the board notice after-the-fact. Those concentrations may later be viewed by regulators as risky. Without proper oversight, it may be too late to protect an institution from outsized losses that could result from having loan concentrations.

Areas Covered

• Conduct Review of Concentration Risk Assessments


• Evaluate the Adequacy of Risk Assessments to Detect Concentrations


• Evaluate the Adequacy of Board and Management Oversight of Concentrations:
  
  
  
  • Risk Management Techniques
  
  
  • Market Monitoring and Analysis
  
  
  • Concentration Modeling
  
  
  • Loan Portfolio Diversification
  
  
  
  
• Status of Supervisory Oversight of Concentrations

Who will Benefit

CFOs, financial officers, credit risk officers, loan review, senior lending officers, loan administration, internal auditors, audit committee members, anyone involved with enterprise risk management

Seminar Summary:

This timely webinar discusses how the institution's internal audit function can conduct a risk-based audit of the institution's concentrations oversight program. (see full course description)

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