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Erudite AfricaCenter of Excellence
← Advanced Credit and Portfolio Risk

Portfolio management and concentration risk

Module 04 / 5 · 60 min

Look past individual loans to the shape of the whole book, and measure concentrations before a single shock hits many loans at once.

In this module you will learn to

  • State the purposes of credit portfolio management
  • Monitor concentration by borrower, group, related party, sector, product, tenor, region and collateral
  • Read a portfolio report and test it against NBE and internal limits
  • Run a simple sector stress test and measure its effect on profit and capital
  • Decide on a large borrower request against the single borrower limit

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.