• Bankers
• Risk Officers,
• External and Internal Auditors,
• Anyone who wants to learn the credit risk concepts and risk modelling techniques,
• Graduate and undergraduate students in business, finance, accounting, banking and the other related disciplines who want to join the banking sector

• More confident in dealing with colleagues and associates in the risk field
• Gain new approaches to minimizing credit risk
• Learn how to accurately spot and measure credit risk exposures to third parties
• Key concepts in credit risk and the range that makes up the risk spectrum.
• Risk Identification, risk weightage and measurement – credit risk ratings and financial statement analysis, including key accounting concepts and commonly used financial ratios
• How credit risk is monitored and controlled – the role of documentation and collateral in the risk equation
• Cash flow lending approaches – when collateral is short or unavailable
• Issues in the identification and management of troublesome loans

Risks faced in Banking Sector, Risk Identification,

• What are the reasons for risks in the banking industry?
• Risks faced by banks,
• Credit Risk and why is it important for a bank?
• Risks associated with lending activities,

Credit culture and risk profile,

• How the credit crunch and its origins has affected our approach to credit risk?
• Definitions of default,
• Default probability recovery rates, LGD and exposure at default
• Impact of credit risk on the bank’s balance sheet, income statement, cash flow statements, and equity prices
• Rating agents approach to credit risk
• Lessons to be learned from the credit crunch

Credit Risk Analysis and Modeling, Risk Assessment

• What information is required for credit risk analysis?
• Credit risk assessment tools.
• Customer risk assessment versus credit portfolio risk assessment,

A modern approach to assessing credit risk,

• Portfolio risk and return,
• Probability of default, rating models
• loss given default
• Exposure at default
• correlation of default

Credit risk on portfolio level vs single transaction

• Loss distributions and relationship to expected loss, worst credit loss, economic and regulatory capital definitions.
• Computer Workshop Spreadsheet exercises for a simple portfolio credit model
• Introduction to portfolio credit risk models; CreditRisk+, CreditMetrics,
• Optimizing portfolios for best risk/return

Tail risk

• Controlling Credit Risk, Risk Mitigation
• Loan policy issues,
• Strategic planning for the loan portfolio,
• Loan portfolio objectives,
• Structured finance, Financial Covenants, Collateralization, Syndication, Limitation.

Securitization and Risk Transformation,

• Techniques for moving risk off-balance sheet, CDOs and other tranche products
• Pros and cons of securitization for origination firms and investors,

The role of rating agencies

• Credit Risk Reporting, Risk Monitoring
• Risk Asset Review Reports,
• Early warning systems,
• Capture asset quality migrations,
• Trigger Actions (i.e. planning credit enhancement, reduction in exposures, exit strategy).

Stress Testing

• Credit Risk-Based Calculations
• Risk-based pricing,
• Risk-based provisioning and capital requirements.
• Regulatory capital under Basel I
• Regulatory capital under Basel II
• Changes under Basel III
• Standardized approach
• Foundation internal ratings-based approach