CREDIT RISK AWARENESS FOR SALES TEAMS

INTRODUCTION
Financial institutions in Nigeria operate within a highly regulated environment where sustainable growth must align with prudential guidelines and risk management standards set by the Central Bank of Nigeria. Sales teams play a critical frontline role in originating quality assets and protecting portfolio integrity.

This course is designed to strengthen credit risk awareness among sales professionals, ensuring alignment with regulatory expectations, internal credit policies, and risk appetite frameworks. Participants will gain practical knowledge to support responsible lending, regulatory compliance, and improved portfolio performance.

COURSE OBJECTIVES

At the end of the session, participants will be able to:

• Understand regulatory expectations relating to credit risk management in Nigeria.
• Recognize the impact of poor credit origination on portfolio quality and compliance.
• Identify early warning signals and high-risk borrower characteristics.
• Apply proper customer due diligence and KYC requirements during onboarding.
• Align sales targets with institutional risk appetite and prudential guidelines.
• Strengthen collaboration with credit, risk, and compliance units.

COURSE OUTLINE

Module 1: Regulatory Environment and Credit Risk in Nigeria

• Overview of CBN prudential guidelines
• Credit Risk Management Framework expectations
• Consumer protection and responsible lending standards
• Consequences of non-compliance
   

Module 2: Understanding Credit Risk and Portfolio Quality

• Definition and types of credit risk
• Non-Performing Loans (NPLs) and their impact
• Link between sales practices and asset quality
• Risk appetite and internal lending policies

Module 3: KYC, Due Diligence, and Customer Risk Profiling

• Know Your Customer (KYC) requirements
• AML/CFT considerations during onboarding
• Basic borrower assessment principles (capacity, character, collateral)
• Data accuracy and documentation standards

Module 4: Identifying Red Flags in Credit Origination

• Behavioral and financial warning signs
• Income verification risks
• Fraud indicators
• Case study discussions

Module 5: Sales, Ethics, and Responsible Lending

• Balancing growth targets with compliance
• Avoiding mis-selling and reputational risks
• Ethical credit origination practices
• Managing declined or high-risk applications professionally

Module 6: Collaboration and Sustainable Growth

• Strengthening coordination with credit and risk teams
• Feedback from portfolio performance
• Continuous improvement in originality

Action planning for compliance-aligned sales