Credit Risk Analysis and Rating (For Bankers)

Mastering Credit Risk Analysis: A Comprehensive Course for Banking Professionals

Are you a banker navigating the complexities of credit? Do you handle significant credit portfolios but lack the formal training to do so with confidence? This course is designed for individuals new to credit risk analysis or those seeking to advance their careers in the credit vertical of their bank – including roles in appraisal, rating, and monitoring.

Mandatory Credit Certifications: Staying current with RBI regulations, completing a recognized credit certificate is now mandatory. This course serves as an excellent foundation for achieving certifications like the Certificate in Commercial Credit from Moody’s Analytics and the Certified Credit Professional from IIBF. This is the first in a series of four courses designed to prepare you for these important credentials.

What You'll Gain:

• Solid Foundation in Credit Risk Analysis: Develop a strong understanding of the core principles of credit risk.
• Borrower Assessment: Gain confidence in evaluating borrowers based on their risk profile.
• Credit Deal Structuring: Learn how to effectively structure credit deals to mitigate potential risks.
• Certification Preparation: Be well-prepared to successfully complete credit certifications from Moody’s Analytics or IIBF.
• Practical Application: Benefit from extensive practice tests to solidify your understanding.

Who Should Enroll?

This course is ideal for:

• Bankers handling credit portfolios.
• Individuals preparing for mandatory credit certifications mandated by RBI.
• Credit Officers
• Branch Managers
• Aspirants for Moody's Analytics or IIBF credit certifications.

Why Choose This Course?

This course provides a holistic understanding of credit risk analysis and credit rating, starting from the foundational principles established by BASEL II. We cover:

• The Origin of Credit Risk: Understand why credit risk analysis is crucial and its role in the credit lending process.
• Risk Assessment: Explore industry risk, business risk, and management risk with real-world examples.
• Financial Risk: Learn to interpret financial statements using practical Excel applications, including ratio analysis (Liquidity, Solvency, Coverage, and Profitability ratios).
• Facility Risk: Understand Loss Given Default (LGD) and Exposure at Default (EAD) in facility risk rating.
• Credit Deal Structuring: Gain practical guidance on creating credit deals with safeguards against potential losses.

Course Content:

• The Starting Point: Understanding the origin of credit risk and various risk calculation approaches.
• Obligor & Facility Risks: Deep dive into PD (Probability of Default), LGD (Loss Given Default), and EAD (Exposure at Default).
• Credit Ratings: How ratings are assigned and their importance in the credit process.
• Credit Risk Analysis & Lending: The relationship between credit risk analysis and credit lending.
• Industry & Business Risk: Analyzing external factors impacting industries and businesses.
• Management Risk: Assessing management risk through real-life case studies.
• Financial Risk: Using ratio analysis and understanding loan and facility structure differences.
• Liquidity & Solvency: Analyzing liquidity ratios (Turn Over Ratio) and solvency ratios/leverage ratios.
• Coverage & Profitability: Understanding coverage ratios and profitability ratios.
• Projections: Learning to evaluate the viability of credit proposals.
• Facility Risk: Determining Loss Given Default (LGD) and Exposure at Default (EAD).
• Deal Structure: Understanding deal structure vs. facility structure, creating effective deal structures, and implementing internal monitoring plans.
• Covenants: Learn about the importance of covenants for loan sanction.
• Practice Test: Over 100 questions to assess your comprehension.