Seven Habits Of An Effective Credit Administration
Speaker: Mr. Dev Strischek
Speaker Designation: Principal, Devon Risk Advisory Group
Speaker: Mr. Dev Strischek
Speaker Designation: Principal, Devon Risk Advisory Group
This webinar session by Dev Strischek is intended to provide guidance on how to develop and maintain a Credit Administration (CA) function that will provide guidance to anyone involved in the credit function of the bank. The session also highlights the safeguards to manage the bank’s loan portfolio in a safe and sound manner.
CA supports credit risk management by watching over credit policy, credit analysis and underwriting, credit approval, credit extension, loan administration, and portfolio management. It also includes ensuring that credit policy exceptions and loan documentation exceptions are mitigated, that credit files and loan documentation are secure.
Credit administration (CA) connects the organization’s credit strategy, credit approval, credit extension, and credit management tasks into a coherent credit risk management function. Whether in the backroom or the front room, CA is necessary to provide a smooth transition from a prospective client to the creditworthy borrower. Analysis and approval is only part of the story; once the loan is made, the borrower’s performance must be monitored in order to ensure repayment on time, in full, and as agreed.
In the Credit Administration area, well-managed and successful banks have seven distinct characteristics. This course will evaluate the reasoning and requirements for each of these characteristics so that participants can begin the process of developing such a culture within their respective organization.
Effective credit administration is critical for the health and stability of financial institutions. Itr starts with a comprehensive understanding of the credit risk associated with each borrower. This involves analyzing the borrower's financial statements, credit history, industry position, and macroeconomic conditions. A robust risk assessment helps in identifying potential red flags and mitigating risks before extending credit.
A frequent speaker, instructor, advisor, and writer on credit risk and commercial banking topics and issues, Martin J. "Dev" Strischek is the principal of Devon Risk Advisory Group based near Atlanta, Georgia. Dev advises, trains, and develops for financial organizations risk management solutions and recommendations on a range of issues and topics, e.g., credit risk management, credit culture, credit policy, credit and lending training, etc.
Besides stints at other banks in Florida, Kansas City, and Ohio, his 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. Mr. Strischek serves as an instructor in RMA’s Florida Commercial Lending School, the American Bankers Association's (ABA), Advanced Commercial Lending School, ABA’s Stonier Graduate School of Banking, and the Southwest Graduate School of Banking.
Mr. Strischek has written over 200 articles 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.
