Credit Risk Management in Banking

Course Description

This comprehensive course on Credit Risk Management in Banking offers a deep dive into the essential elements of the process adopted by banks for managing credit risk. Designed for both aspiring and existing bankers, this intermediate-level course provides valuable insights into the challenges faced in credit risk management and equips learners with the necessary knowledge to navigate this critical aspect of banking.

What students will learn

• The role of Credit Risk Management in lending decisions
• Basel Norms and their implications
• Selection criteria for borrowers
• Reading and interpreting financial statements to mitigate credit risk
• Understanding and applying Cash Flow, Fund Flow, and Ratio analysis
• Strategic decision-making in credit risk management
• Managing credit portfolios effectively
• Understanding and utilizing credit rating systems

Pre-requisites

• Familiarity with basic concepts of Credit Risk Management
• Basic understanding of banking and finance principles
• Proficiency in English (as the course is conducted in English)

Course Coverage

• Principles of Risk Management
• Basel Accords and their implications on credit risk
• Credit process and selection criteria
• Financial statement analysis and economics of credit
• Credit risk mitigation tools
• Strategic credit decision-making
• Management of credit portfolios
• Credit rating systems

Who this course is for

• Aspiring bankers looking to specialize in credit risk management
• Existing bankers aiming to enhance their knowledge in credit analysis and underwriting
• Finance professionals seeking to understand the intricacies of credit risk in banking
• Students of economics and finance interested in practical applications of credit risk management

Real-world application of skills

Graduates of this course will be well-equipped to:

• Assess and manage credit risk in banking institutions
• Make informed lending decisions based on comprehensive risk analysis
• Interpret financial statements and apply various analytical tools
• Implement effective credit risk management strategies
• Navigate regulatory requirements related to credit risk
• Contribute to the overall financial stability of banking institutions

Syllabus

1. Introduction
2. Module 1: Principles of Risk Management
3. Module 2: Basel Accords and Credit Risk Loss Distribution
4. Module 3: Credit Process and Credit Selection
5. Module 4: Application of Credit Risk Measurement
6. Module 5: Credit Risk Management – Mitigation Tools
7. Module 6: Strategic Credit Decision Making, Management of Credit Portfolio, and Credit Rating System

Each module covers specific topics related to credit risk management, providing a well-rounded and in-depth understanding of the subject matter.