Credit Risk
Description
Credit risk refers to the risk that a borrower may not repay a loan and that the lender may lose the principal of the loan or the interest associated with it. When lenders offer borrowers mortgages, credit cards or other types of loans, there is always an element of risk that the borrower may not repay the loan. Similarly, if a company offers credit to its client, there is a risk that its clients may not pay their invoices. Credit risk also describes the risk that a bond issuer may fail to make payment when requested or that an insurance company won't be able to make a claim. So, credit risk has different spheres of origination and in this training you will know how to measure credit risk and what should be taking into consideration as risk management actions. As well as these I will see how credit risk of bank assets influence on banks’ capital adequacy ratio and what techniques can be used to mitigate this risk.The course gives a general understanding of credit risk, its types and possible ways of its management
is issued on the Luxoft Training form
Objectives
To provide the audience the understanding of the credit risk, its types and lifecycle events, the overall description of credit risk measurement, management, and mitigation, how credit risk is included in the current landscape of bank regulatory capital requirements.
Target Audience
Testers, System and Business Analysts, Architects, Developers, and Project Managers working on credit risk projects
Prerequisites
FIN-001. Introduction into Financial Markets
Roadmap
Credit Risk: an Overview
Credit Risk Lifecycle
Credit Risk Types
Credit Risk Measurement & Management
Credit Risk and the Basel Accords
Estimating Default Probabilities From Credit Spreads
Credit Risk Mitigation