Business Ethics and Legal Compliance

1. Ethical practices in the industry
-Treating people with consideration and respect
-Communicating with honesty and integrity
-Transparency, confidentiality and fairness
-Emerging ethical issues in the industry

2. Business ethics for professionals
-Theories of ethics
-Ethical codes for credit professionals
-Moral values and ethical decision making
-Ethical evaluation skills
-Personal responses to ethical problems

3. Legal Foundations
-Sources of law
-Jurisdiction of the courts

4. Law of contract for credit transactions
-Legal requirements of a valid contract
-Terms of a contract
-Vitiating elements of a contract
-Remedies for breach
-Accepting securities
-Nomination of accounts
-Negotiable instruments
(Including: Bills of exchange, Cheques, Letter of credit, Guarantees)

5. Business law and its implication to credit
– Forms of businesses
– Legal personality
– Solvency test
– Creditors’ rights
– Winding up of a company
– Agency law

6. Legal recoveries of credit
– Jurisdiction of courts
– Legal documentation
– Instructing the lawyer
– Providing evidence in court

7. Non legal recovery of loan
– Alternate dispute resolution
– Amicable settlement of loans
– Steps prior to litigation
– Defenses available to a customer
– Precautions in giving evidence in a court

8. Law relating to finance companies and banks
(Including; Banking Act, Consumer Credit Act, Consumer Protection Act, Debt Recovery Act, Debt Recovery Special Provisions Act,

Financial Credit Management and Reporting

1.Credit policies and credit management
-Importance and use of credit policies
-Main features of a credit policy
-Credit policies for different industries
-The process of credit management
-Credit execution and administration
-Credit approval and implementation
-Role and functions of credit management
-Forecasting and cash flow projections
-Extending customer credit limits
-Credit portfolio management

2.Credit management in specific disciplines
-Trade credit management
-Export credit management
-Consumer credit management

-Types of leasing products (Including: Corporate, Commercial, Consumer, Agricultural, SME and Micro leasing)
-Managing lease operations
-Lease agreements and operations
-Calculating lease profitability
-Marketing of lease products
-Lease structuring proposal development, and sanctioning
-Lease disbursement, accounting and Relationship management
-Lease administration

4.Credit reporting
-Structure of the credit report
-Users and key considerations in credit reporting
-Generating and using the credit report
-Credit registry and credit bureau

5.Securities and bank advances
– Types of securities (Including: Mortgage, Pledge, Assignment, Guarantee)
– Types of Advances (Including: Loans, Cash Credit, Overdraft, Discounting of Bills)
– Enforcement of a security

Risk Management and Financial Analysis

1.Risks associated in the credit industry
-Credit risk
-Economic and financial risk
-Market and operational risk
-Business and reputational risk
-Political and legal risks
-Systemic risk

2. Measures of credit risk
-Credit Ratings /Credit Scores
-Outcomes of the crib report
-Cash flow forecasting
-External ratings Services

3.Methods for credit risk mitigation
-The role of supervisors
-Establishing an appropriate credit risk environment
-Operating under a sound credit granting process
-Maintaining an appropriate credit administration ,measurement and monitoring process
-Control systems in the credit industry
-Ensuring adequate controls over credit risk

4.Accounts preparation
-Preparation of financial statements (Including: Balance sheet, Income statement and Cash flow statement for single entity only)

5. Financial statement analysis
-Horizontal analysis
-Vertical analysis
(Financial ratios analysis)

Entry Requirements

Diploma in Credit Management of SLICM
Diploma in Credit Management of IBSL
Diploma in Business and Finance of IBSL with Business Lending

The candidates who have completed the following qualifications can claim for the Module exemptions from Diploma in Credit Management as stated below.

Executive Certificate in Marketing Credit Instruments of SLICM
– Risk Management and Financial Analysis

2.Certificate in Micro Credit Management of SLICM
– Financial Credit Management and Reporting

3. LLB Degree
– Business Ethics and Legal Compliance