Course Modules

Module 1: Fundamentals of Credit Risk in Microfinance

• Types and sources of credit risk

• Portfolio quality indicators (PAR, write-offs, provisioning)

• Risk-based pricing principles

• Case Study: Analyzing a high PAR crisis in a rural lending program

Module 2: Credit Appraisal and Client Assessment

• Qualitative and quantitative appraisal techniques

• Group vs. individual lending risk assessments

• Collateral evaluation and alternatives

• Exercise: Develop a client creditworthiness profile

Module 3: Portfolio Diversification and Risk Mitigation

• Importance of sectoral, geographic, and product diversification

• Insurance and guarantee mechanisms

• Building balanced portfolio structures

• Workshop: Design a diversification strategy for an MFI

Module 4: Monitoring, Early Warning, and Delinquency Management

• Key early-warning signals for default

• Collection strategies: preventive and corrective

• Loan restructuring and recovery planning

• Simulation: Create a delinquency management action plan

Module 5: Advanced Portfolio Management and Reporting

• Portfolio stress testing techniques

• Risk-adjusted performance metrics (RAROC)

• Portfolio reporting dashboards for management

• Workshop: Analyze a sample portfolio and generate a risk report