How To Build And Maintain A Strong Credit Culture
A frequent speaker, instructor, advisor, and writer on credit risk and commercial banking topics and issues, Dev is the principal of Devon Risk Advisory Group and engages in consulting, speaking, and training on a wide range of risk, credit, and lending topics. As a former SVP and senior credit policy officer at SunTrust Bank, Atlanta, he was responsible for developing, implementing, and administering credit policies for SunTrust's wholesale lines of business--commercial, commercial real estate, corporate investment banking, capital markets, business banking, and private wealth management. He also spent three years as managing director and credit approver in SunTrust's Florida commercial lending and corporate investment banking areas, respectively. Prior to SunTrust, Dev was chief credit officer for Barnett Bank's Palm Beach market. Besides stints at other banks in Florida, Kansas City, and Ohio, Dev's experiences outside of banking include CFO of a Honolulu construction company, combat engineer officer in the U.S. Army, and college economics instructor in Hawaii, Missouri, and Florida. A graduate of Ohio State University and the ABA Stonier Graduate School of Banking, he earned his M.B.A. from the University of Hawaii.
Dev serves as an instructor in RMA's Florida Commercial Lending School, the Stonier Graduate School of Banking, the Southwestern Graduate School of Banking, the Pacific Coast Banking School, and the American Bankers Association's (ABA) Commercial Lending. His school, conference, and workshop audiences have included participants drawn from the ABA, RMA, OCC, Federal Reserve, FDIC, FFIEC, SBA, the Institute of Management Accountants (IMA), and the AICPA.
Dev has written about credit risk management, financial analysis, and related subjects for the ABA's Commercial Insights, the Risk Management Association's RMA Journal, and other business professional journals. He is the author of Analyzing Construction Contractors and its related RMA workshop. A past national chair of RMA and former Florida Chapter president, Dev serves as a member of the RMA Journal's advisory board, and an ex-officio board member of the Florida and Atlanta RMA chapters. He also serves on the advisory board of the Atlanta Chapter of the Professional Risk Managers' International Association (PRMIA), and he has consulted on credit risk issues with banks in Morocco, Egypt, and Angola through the US State Department's Financial Service Volunteer Corps (FSVC).
Credit risk is the probability that a borrower is unable or unwilling to repay your loan in full, on time, and as agreed. Identifying, evaluating, underwriting, and extending credit to a creditworthy borrower requires teamwork, and a strong credit culture builds and maintains that team.
The optimal culture is led by management that prioritizes credit quality and says so regularly. Lenders and credit approvers work together; there are few credit policy and loan documentation exceptions. Risk appetite and risk tolerance are in balance as the organization executes its credit strategy. Credit policy, processes, and procedures are in sync. This session will describe and explain the key elements needed to build, implement, and maintain this strong, optimal culture.
- Credit risk and its relationship to the other enterprise risks
- The interplay between effective credit risk management and strong credit culture
- How banks get into trouble by not managing transaction, intrinsic, and concentration risk
- Definition of credit culture
- Basic elements of credit culture
- 4 types of credit culture
- Framework for establishing and maintaining credit culture
- Risk appetite vs. risk tolerance
- Relationship between credit risk and credit discipline
Course Level - Basic and Intermediate
Who Should Attend
- Credit Analysts and Credit Managers
- Loan review officers
- Work-out officers
- Commercial Lenders
- Credit Risk Managers
- Chief Credit Officers
- Senior Lenders and Senior Lending Officer
- Bank Director
- Chief Executive Officer
- Board Chairman
Why Should You Attend
Investors and regulators, clients and customers, employees, and stakeholders all have vested interests in your organization’s credit culture. Is it conservative or aggressive, profit-minded or production-oriented? The market puts a higher capitalization on organizations with strong credit cultures and high credit quality, so it is worth your while to identify your current culture and find out how to make it stronger.