Description

Mastering Credit Risk training aims to equip you with the skills and knowledge necessary to manage credit risk effectively, minimizing potential losses while maximizing lending opportunities.

Who is this training for ?

For whom ?

Employees in the Commitments, Risks and audit departments, permanent controllers of banking, credit or financing companies

Prerequisites

Training objectives

Define the various aspects of credit risk to limit their impact

Identify credit risk measurement and management techniques (at individual and portfolio level)

Analyze the risks of a retail banking loan portfolio

Integrate regulatory and prudential expectations and adopt a simplified approach to default risk

Training program

• DEFINITION OF CREDIT RISK
  • Definition of a counterparty
  • Proven credit risk
  • Doubtful outstandings and the risk of non-recovery
• THE LEGAL AND REGULATORY FRAMEWORK
  • Selection of counterparties and risk measurements
  • Consolidated vision of credit risk
  • Quarterly review
  • Analysis of portfolio profitability
  • Non-concentration risk
  • Scheme of adequate and periodically reviewed limits
  • Risk control procedures
  • Prudential obligations (BASEL III, reporting COREP….)
• DEFECT MODELING: SIMPLIFIED APPROACH
  • Ratings
  • the definition of default
  • the different approaches to modeling default risk
  • the rating agencies
  • MERTON model: structural approach, intensity approach
• CREDIT RISK MONITORING AND CONTROL SYSTEMS
  • Prevention
  • The a posteriori monitoring system for credit risk
  • Recovery
  • Controls of the
• REDUCING CREDIT RISK
  • Taking guarantee
  • Focus on securitization and CDS/CDO credit abuses