Learning Objectives
By the end of this module, you will be able to:
Understand the Importance of Early Warning Signs in Lending
Learn how early detection of financial distress helps protect the lenders position.
Understand the role of financial, operational, behavioural, and market indicators in effective credit monitoring
Identify and Interpret Key Early Warning Signs
Recognise financial red flags such as covenant breaches, liquidity shortfalls, and rising leverage.
Evaluate operational risks, including executive turnover, supply chain disruptions, and declining client trading performance.
Identify behavioural and external market signals that may indicate a deterioration in credit quality
Analyse Credit Risk and Financial Impact
Assess how early warning signs affect a clients repayment capacity and creditworthiness.
Apply financial metrics, cash flow indicators, and working capital trends to measure vulnerability
Develop Proactive Risk Mitigation Strategies
Recommend tailored actions such as liquidity support, covenant waivers, or loan restructuring.
Apply enforcement options when appropriate (e.g. accelerated repayments or security enforcement).
Collaborate with clients to develop recovery plans and restore financial stability and sustainable trading performance
Apply Early Warning Sign Analysis Real Scenarios
Use case studies, monitoring templates, and exercises to build practical analytical skill.
Interpret financial and operational trends to guide individual credit recommendations
