How To Win in Unsecured Competitive Market: Optimizing Risk Appetite

Each training participant is expected:
* To have knowledge how to deliver unsecured product in very competitive market by aligning its volume aspiration against its appetite
* Have ability to design and implement good credit process for unsecured product in competitive market
* Can design its own credit parameters and credit decisioning in relation to its appetite
* Have ability to underwrite unsecured credit applications


Certificate (by PasarTrainer)

* Optimizing Credit Decision Tool to minimizing inconsistent credit decision: Designing Credit Score that is derived from targeted loss, Bureau overlay augmentation if scorecard is deemed not strong, and Designing acceptable credit boundary based on risk appetite
* Introducing Insurance Credit
* Joint Financing with Bank
* Only running as Credit Cyle Company (Selling inventory after several months of booking)


5. How to Reduce or Transfer The Risk

Pre-Test

* What is our position in the market: Proposition Matter, small but smart will win the war and Selecting suitable product in niche markets
* Assessing infrastructure capability to support the competition
* Channel delivery to attract good candidates
* Product Mix will determine the appetite


1. Indonesia Unsecured lending landscape

* Regulatory Reporting: Compliance as a Financial Institution Provider

6. Regulatory Reporting: Compliance as a Financial Institution Provider

* Determining Scale of Business
* Determining cost of fund as well as operational cost
* Creating Risk appetite product based on product mix: Loss forecast approach, Loss plug in (PBT target base), and Vintage base loss forecast (must have historical data)
* Creating Risk Heat Map: Risk type that might occur: Credit, Operation, Market (if any), Liquidity (if any), Reputation, Legal, Strategic, and Compliance, Introducing what is the Main risk appetite indicator and introduce all risk type into Map, Introducing early trigger and action taken to remediate, and Determining Risk appetite and Risk tolerance




2. Creating Credit Risk Boundaries 

* Building Risk Appetite and Risk Map (1 hour by team)
* Reviewing personal employ and self-employed applicant ( 1 hour by team)
* How to optimize a balance sheet in relation of reducing/transfer the risk (1 hour by team)

Case Study

* Flow of Credit Cycle
* Health product: Acquisition and Portfolio Management
* Unhealth product: Collection Treatment, Regulatory point of view, and Recovery



3. Understanding Credit Cycle 

Post-Test

* KYC process, aligning with POJK
* Verification: Income Verification, Employment/Business Assessment, and Living and business existence
* Fraud alert
* Credit Policy Related: Risk Level of Debtor, 5 C’s assessment based on bureau, Regulatory requirement (if any), Exposure management, Debt burden review, and Limit Assignment

