What is Credit Risk Management: Imagine that you are a bank and a main part of your daily business is …

US$104 per 365 days

What is Credit Risk Management:

Imagine that you are a bank and a main part of your daily business is to lend money. Unfortunately, lending money is a risky business - there is no 100% guarantee that you will get all your money back. If the borrower defaults, you will face losses in your portfolio. Or, in a bit less extreme scenario, if the credit quality of your counterparty deteriorates according to some rating system, the loan will become riskier. Managing such risk is utmost important for any financial institution.

Why it is important:

This course offers you an introduction to credit risk modelling and hedging. We will approach credit risk from the point of view of banks, but most of the tools and models we will overview can be beneficial at the corporate level as well. You will be able to understand and correctly use the basic tools of credit risk management, both from a theoretical and, most of all, a practical point of view.

What you will learn:

  1. Overview of debt ratings: Understanding the types of and purpose of debt ratings
  2. Approach and criteria applied by the rating agencies
  3. Structured approach to credit analysis: Purpose, Payback, Risks and Structure
  4. Types of counterparty: Corporates, financial companies, special purpose entities, and holding companies
  5. Sources of payback from each type of counterparty
  6. Transaction risk analysis: Categorizing and analyzing the risks
  7. Components of structuring to mitigate against default

Target audience:

This course would suit anyone with a support job in a bank, or any financial institution, or an investor. This could be a lawyer, an operations manager, marketing executives, IT developers and managers, and human resources. It would also serve a graduate well, as an introduction to banking.

Curriculum:

  1. Credit Risk Overview Introduction to Credit Risk
  2. Credit Risk Overview Credit Risk Types
  3. Credit Risk Overview Banking Book versus Trading Book Risk
  4. Credit Risk Overview It’s Not Just About Credit Risk
  5. Credit Risk Overview Expected and Unexpected Loss
  6. Credit Risk Overview Credit Risk Appetite and Credit Risk Management
  7. Credit Risk Overview Capital Requirements
  8. Credit Risk Overview Lessons from the Financial Crisis
  9. Credit Risk Overview Impact of the Financial Crisis on Credit Risk Management
  10. Credit Risk Management Why Managing Credit Risk is Important
  11. Credit Risk Management Common Failures of Credit Risk Management
  12. Credit Risk Management Many Stakeholders to Manage
  13. Credit Risk Management Regulators and Regulation
  14. Credit Risk Management Strategic Credit Risk Management
  15. Credit Risk Management Credit Risk Management Framework
  16. Credit Risk Management Credit Culture
  17. Credit Risk Management Risk Reward (Part 1)
  18. Credit Risk Management Risk Reward (Part 2)
  19. Credit Risk Management Credit Data
  20. Credit Risk Management Credit Risk Reporting
  21. Credit Risk Appetite Basics
  22. Credit Risk Appetite Concentration Risks
  23. Credit Risk Appetite Customer Risk
  24. Credit Risk Appetite Industry Risk
  25. Credit Risk Appetite Country Risk
  26. Credit Risk Appetite Product Risk
  27. Credit Risk Measurement and Models Credit Risk Measures
  28. Credit Risk Measurement and Models Probability of Default (PD)
  29. Credit Risk Measurement and Models Risk-Weighted Assets (RWAs)
  30. Credit Risk Measurement and Models Credit Risk Models

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