Course description
Credit Risk Management in Banking
The learners will gain insights on the essential elements of the process adopted by Banks for Credit Risk Management.
To understand the challenges posed and will be equipped with necessary knowledge.
The Course further ventures into major domains of Credit Risk Management; like Selection of borrower, Reading Financial statements, using Financial Management tools e. g. Ratio Analysis, Fund Flow analysis, Cash flow Analysis.
The Course discusses on various tools, practices, models related to Credit.
It will also be of value to existing bankers who want to understand the various facets of Credit Risk Management and aspire to be a Credit Analyst or Credit Underwriter.
Upcoming start dates
Who should attend?
Prerequisites:
Familiarity with basic concepts of Credit Risk Management.
Training content
The course is structured in six modules, with each module catering to a separate risk domain.
Introduction
About the course
Brief Objectives
Relevance
Module 1: Principles of Risk Management:
Introduction to Credit Risk Management:
Classification of Credit Risk – Credit Spreads
Credit Risk assessment tools
Types and mitigants of Concentration and Transaction Risk Management
Micro & Macro Business environment
Module 2:Basel Accords and its implications; Credit Risk Loss Distribution;
Credit Risk Models Basel I/II/III/IV Guidelines
Approaches of Credit Risk
PD, LGD, EAD, CEL
External Ratings
Credit Scoring and Retail Credit Risk Management
Credit Derivatives
Module 3: Credit process, credit selection
Credit Analysts Skills/Role
Credit risk in selection of borrower
Character,Capacity, Collateral, Capital and Condition***
Counter Party Credit Risk.***
Module 4:Application of Credit Risk Measurement: Reading financial Statement and Economics of Credit__**
Basic Accounting Principles and Concepts
Accounting Standards
Financial Statement Analysis, Profit and Loss account / Balance Sheet
Module 5: Credit Risk management – Mitigation tools
Financial Assessment Tools
Trend Analysis
Ratio Analysis
Cash Flow Statement
Fund Flow Statement
Module 6: Strategic credit decision making,management of Credit Portfolio andCredit Rating System
Selection of Collateral
Negotiation for Covenants
Spread Risk, Portfolio Credit Risk, Structured Credit Risk
Various Credit Risk Models,
Risk Adjusted Return on Capital & Return on Risk Weighted Assets***
Capital Asset Pricing Model (CAPM), Weighted Average Cost of Capital
Course delivery details
This course is offered through State Bank of India, a partner institute of EdX.
3-5 hours per week
Costs
- Verified Track -$149
- Audit Track - Free
Certification / Credits
What you'll learn
- Role of Credit Risk Management in lending decisions.
- Basel Norms
- Selection of an obligor.
- To read a Balance sheet to mitigate Credit risk.
- To understand Cash Flow, Fund Flow and Ratio analysis
Using Credit Risk management for Strategicdecision making,managing Credit Portfolio and understandingCredit Rating System.
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