Course Info

Length: 1 Week

Type: Online

Available Dates

Fees

  • Dec-23-2024

    1,800

  • Jan-27-2025

    1,800

  • Feb-24-2025

    1,800

  • Mar-31-2025

    1,800

  • Apr-28-2025

    1,800

  • May-26-2025

    1,800

  • June-30-2025

    1,800

  • July-28-2025

    1,800

  • Aug-25-2025

    1,800

  • Sep-29-2025

    1,800

  • Oct-20-2025

    1,800

  • Nov-24-2025

    1,800

  • Dec-22-2025

    1,800

Course Details

Course Outline

5 days course

Fundamentals of Credit Risk Management

  • Overview of the course’s objective and outlines
  • Understanding the meaning and types of credit risk
  • Understanding the 6 C’s of credit
  • Overview of credit risk management process
  • Discussing credit risk management regulatory frameworks
  • Discussing the impact of credit risk in project finance and working capital
  • Case study: historical credit risk events

Credit Risk Analysis & Assessment

  • Understanding financial statements analysis:

  •       Balance sheets
  •       Income statements
  •       Cash flow statements

  • Exploring qualitative and quantitative credit risk assessment methods
  • Techniques for estimating credit losses:

  •       Probability of default (PD)
  •       Exposure at default (EAD)
  •       Loss given default (LEG)

  • Understanding the fundamentals of scoring and rating systems in credit risk assessment
  • Discussing rating methodologies
  • Calculating credit risk exposure and strategies to manage the exposure
  • Methods for calculating credit risk:

  •       Value-at-Risk (VaR) analysis
  •       Scenario analysis

  • Best practices for structuring loans and reviewing loan documentation

Credit Risk Mitigation & Transfer

  • Discussing credit risk mitigation strategies:

  •        Credit enhancement
  •        Guarantees
  •        Covenants

  • Understanding the role of collateralization in credit risk mitigation
  • Exploring the meaning and role of credit derivatives in credit risk management
  • Understanding the impact of securitization on credit risk transfer
  • Exploring covenant formulas and using them for mitigating credit risk
  • Tools to mitigate credit risk:

  •        Credit insurance
  •        Surety of credit
  •        Letters of credit

  • Discussing regulatory frameworks of credit risk management

Portfolio Management & Stress Testing

  • Exploring common portfolio credit risks and their impact on diversification
  • Strategies to mitigate portfolio credit risks:

  •        Diversification
  •        Collateral
  •        Securities

  • Discussing the role of stress testing in credit risk
  • Exploring stress testing methods:

  •        Backtesting using historical data
  •        Stress testing using hypothetical returns
  •        Principle components analysis

  • Understanding the Basel III accord and its implication for capital adequacy
  • Distinguishing between credit risk pricing in non-financial and financial institutions
  • Exploring credit risk management practices in banking 

Challenges & Best Practices

  • Discussing best practices for managing credit risk in a corporate environment
  • Exploring the challenges and obstacles to credit risk management
  • Identifying post-lending problems and discovering strategies to handle them:

  •       Financial distress
  •       Bankruptcy

  • Exploring credit risk management technologies
  • Discussing the impact of emerging trends on credit risk management:

  •       Fintech
  •       Climate change

  • Simulation exercise of a credit risk crisis scenario
  • Lesson learned and best practices
  • Recap and course evaluation