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Erudite AfricaCenter of Excellence
← Advanced Credit and Portfolio Risk

Early warning signals and loan follow-up

Module 02 / 5 · 60 min

Catch deterioration in the first month it shows, through physical, financial and legal follow-up and a disciplined watch list.

In this module you will learn to

  • Explain why follow-up continues for the whole life of a loan
  • Recognize early warning signals from the account, the financials, management and the environment
  • Run physical, financial and legal follow-up, including project follow-up
  • Build a watch list with actions, owners and deadlines
  • Apply the escalation steps from first call to committee decision

Built on

  • Erudite Africa training module: Level 3: Advanced Credit and Portfolio Risk (October 2026)
  • Erudite Africa credit training program overview and Ethiopian-context module (2026)
  • A commercial bank's Revised Credit Procedure Manual (2025), unnamed
  • NBE directives as listed in the lessons: SBB/87/2024, SBB/88/2024, SBB/89/2024, SBB/90/2024 and SBB/95/2025
  • Ethiopian laws: Proclamations No. 97/1998 and 98/1998, Movable Property Security Right Proclamation No. 1147/2019, Financial Reporting Proclamation No. 847/2014

Examples and companies are fictional. Bank practices are shown as typical Ethiopian practice, not as any one bank's policy. Always apply your own institution's approved policy and the current NBE directives.