Design a Loss Provision Funding Model Training

Learning Outcomes

• Analyse the financial consequences of potential losses on an entity and determine the required provisions.
• Evaluate different funding model options for loss provisioning, including self-insurance, captive insurance, and external insurance.
• Design a funding model that aligns with the entity's risk appetite, regulatory requirements, and financial capacity.
• Implement the funding model by developing policies, procedures, and monitoring mechanisms.
• Demonstrate the ability to review and adjust the funding model in response to changing risk profiles and financial conditions.

Target Audience

This course is intended for financial managers, risk managers, accountants, and senior professionals responsible for financial planning and risk management within an entity.

Prerequisites

None — open enrollment

Course Outline

Practicals

Overview

Practical sessions are integral to this course, allowing learners to apply theoretical concepts to real-world data. Over 21 hours, participants will build, validate, and implement a loss provision funding model using Excel and statistical software, ensuring hands-on proficiency.

Practical Activities

• Data Preparation and EDA — Learners clean and explore a provided dataset of loan performance, performing data quality checks and creating visualizations. (4h)
• Building PD, LGD, and EAD Models — Learners develop statistical models for PD (logistic regression), LGD (beta regression), and EAD (linear regression) using software. (6h)
• Calculating Expected Credit Losses Under IFRS 9 — Learners implement stage allocation and calculate 12-month and lifetime ECL under multiple macroeconomic scenarios. (5h)
• Model Validation and Stress Testing — Learners perform backtesting and stress testing on their models, documenting results and limitations. (4h)
• Capstone: End-to-End Model Build and Presentation — Learners integrate all components into a working model and present their approach and results to peers. (2h)

Summatives

Each delegate is assessed continuously throughout the course via daily exercises, scored practical assignments, and a final summative test at the end.

Practical Assignments — 30%

Practical assignments are observed and scored against a rubric during the practical sessions. Each delegate's practical mark is averaged into a single 100% score and contributes 30% to the final total.

Daily Exercises — 20%

Every training day ends with a multiple-choice exercise scored out of 100%. The scores from each daily exercise are averaged across the duration of the course to produce a Daily Average mark, which contributes 20% to the final total.

Final Test — 50%

On the last day a final summative test is written. It is a multiple-choice paper with multiple-answer questions: each question may have more than one correct option, and a single wrong selection on a question marks the entire question wrong — no partial credit. The final test is scored out of 100% and contributes 50% to the overall mark.

Final Total

Component	Out of	Weight
Practical Assignments (rubric-scored)	100%	30%
Daily Average (multiple choice)	100%	20%
Final Test (multi-answer multiple choice)	100%	50%
Final Total	—	100%

All marks are recorded on the AATICD LMS and visible to each learner under their account.

Certificate

How it works

• Certificates are auto-generated on the AATICD LMS as soon as the marks pass the 50% threshold.
• Each certificate is a branded PDF with the delegate's name, the course title, the unit standard ID, NQF level, credits, and the date of issue.
• You can download or print your certificate from your LMS dashboard at any time after issue — there's no reissue fee and no expiry date.
• If you scored under 50% you can sit the final test again at the next scheduled session at no extra cost.

Where to find it

Sign in to the LMS, open your dashboard, and your certificates appear under My Certificates. Each entry has a View / Download button and a print option.

Training Discounts

Group discounts apply automatically — the more delegates you enrol, the greater the saving. Discounts are calculated at 3% per 5 delegates, scaling up to 40% off for 100+ delegates.

Delegates	Discount
5	3% off
10	6% off
15	9% off
20	12% off
25	15% off
30	18% off
50	30% off
75	35% off
100	40% off

3% discount per 5 delegates, up to 40% off for 100+ delegates. Contact us for a custom group quote.