Non-Performing Loans Management and Advanced Financial Modeling.

Overview

Course Objectives

By the end of the course, participants will be able to:

• Understand alternative approaches to NPLs management and recovery structures
•  Understand different NPLs recovery strategies/techniques
• Understand accounting treatment of non-performing loans and loan loss provisioning
• Understand IFRS 9 accounting standard for NPL management
• Prepare effective financial models utilizing powerful Excel functions
• Use core financial modeling techniques
•  Forecast investments, and calculate valuations of projects and companies in an effective manner
• Develop comprehensive financial models to support investments decisions

Target Audience

Credit controllers, risk management professionals, corporate finance professionals, investment professionals, CFOs, financial controllers, finance managers, financial analysts, corporate bankers, and business development analysts.

What you will learn

Course Outline 

Non-Performing Loans Management

Introduction to Non-Performing Loans

• Definition of NPL
• NPL Types
• Systematic impact of NPL

NPL Strategy

• Assessing the operating environment
• Developing the NPL strategy
• Implementing the operational plan 
• Embedding the NPL strategy

NPL governance and decision making

• Steering and decision making
•  NPL operating model
•  Control framework
•  Monitoring of NPLs and NPL workout activities
•  Early warning mechanisms/watch-lists

Forbearance

•  Forbearance options and their viability
•  Sound forbearance processes
•  Affordability assessments

NPL Recognition

•  Implementation of the NPE definition
•  Link between NPEs and forbearance
•  Further aspects of the non-performing definition
•  Links between regulatory and accounting definitions

NPL impairment in line with IFRS 9

• Overview of IFRS 9
•  Overview of impairment
•  Probabilities of Default  considerations
• Loss Given Default considerationss
• Individual estimation of provisions
• Collective estimation of provisions
• Other aspects related to NPL impairment measurement

NPL write-offs

• Overview of NPL write-offs
• Timeliness of provisioning and write-off
• Provisioning and write-off procedures

Advanced Financial Modeling and Dashboards using Excel

Introduction to Financial Modeling in Excel

• Key Excel functions used in Financial modeling
• Advanced range names, including formulas and naming conventions
• Pivot Tables
• Scenarios, sensitivity, data tables
• Best practice guidelines and spreadsheet modeling standards

Financial Modeling Overview

• Modeling fundamentals
• Steps in model building
• Key concepts

Model Components

• Capital budgeting & depreciation modeling
• Debt modeling
• Capital Structure
• Ratio analysis
• Tax considerations
• Inflation 
• Reporting considerations: changing timescales, changing currencies, units

Specific Purpose Modeling

• Company valuation & financial statement simulation
• Project finance modeling
• Mergers & Acquisitions Analysis
• Divestiture

Advanced Modeling Applications

• Multi-variable Monte Carlo Simulations
• Advanced MapReduce
• Introduction to VBA Macros: useful functions and macros, and how to apply these to models
• Advanced Charting techniques
• Advance Excel Dashboards