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Asset Quality Ratings
Key Tool for Managing Portfolio Credit Risk and
Assessing Adequacy of the Allowance for Loan and Lease Losses (ALLL)


A critical tool for managing portfolio credit risk is an effective asset quality rating framework (AQR). The AQR plays multiple roles:

  • Defining the institution's tolerance for risk
  • Measuring portfolio risk
  • Monitoring portfolio performance
  • Pricing loans
  • Determining the adequacy of the Allowance for Loan and Lease Losses

A granular asset quality rating framework is also a tool for creating competitive advantage.

Who Should Attend:
Board Members
Senior Lenders
Senior Credit Officers
Risk Managers
Credit Administration Manages

Program Length: One Day