Credit Risk Assessment, Modelling and Management

This Credit Risk Assessment course gives participants a comprehensive overview of the key concepts and methodologies in understanding the drivers of credit risk, modelling tools used for the measurement of credit risk, and current best practice in credit risk management techniques. 

The course focuses on the actual practice of credit risk assessment within financial institutions as well as on the quantitative and methodological tools and procedures that are at the cutting edge of measuring, mitigating and managing credit risk. 

Treatment of credit risk has shifted greatly since the global financial crisis of 2008. Prior to then, it was considered almost inconceivable that major investment banks and global insurers could default and create a systemic credit and liquidity crisis.  Since the crisis, there has been a universal re-thinking of most aspects of legacy risk management techniques.  Financial regulators and the Basel Committee on Banking Supervision have placed significant emphasis on the need for innovative and more robust methods of modelling financial stress and the kinds of credit market deterioration that was witnessed during the crisis.  

This course utilizes Excel models for credit analysis, individual calculation exercises, team activities and plenary discussion.

By the end of the course, participants will be able to:

• Identify the key elements of credit risk
• Analyze the micro-financial drivers of credit risk and macro-economic factors which impact system-wide credit risk
• Explain modelling techniques for assessing credit risk
• Demonstrate proficiency with different methods and tools for credit scoring
• Demonstrate the usage and risks of credit derivatives
• Apply collateral management techniques to credit derivatives exposures

This course is beneficial for banking personnel in all areas of credit risk.  Others who will benefit include, but are not limited to, asset allocators, portfolio strategists, sovereign wealth fund managers and research staff, risk managers/controllers, private investors and senior back office personnel.

The course is also valuable for those interested in credit modelling and those engaged in compliance with all applicable regulations regarding credit risk in financial institutions.

• Credit risk modelling
• Assessment of credit requests
• Assessment of funding loans and credit facilities
• Compliance with all regulations regarding credit
• Management of a credit committee and risk committee