FIN625 : Credit & Risk Management

Course Overview

Course Synopsis

This intensive course provides a step by step, systematic and practical approach to credit analysis and credit applications. The impact of Basel II is covered through the assignment of internal and external credit ratings, and the calculation of capital requirements and returns according to the advanced IRB approach. On the surface, risk management appears to be a relatively simple process, but achieving effective risk management is often illusive. This course offers a comprehensive look at the risk management process, including tips to succeed and traps to avoid based upon a number of lessons learned from actual projects.

Course Learning Outcomes

At the end of the course, you will be able to understand:

  • The nature and importance of credit risk- largest source of bank losses
  • The main causes of credit losses and what sound Credit Risk Management entails- best practices of credit management
  • Capital requirements-the regulatory framework of Basel II
  • A standard methodology or “recipe” to assess corporate credit risk and submit consistent credit applications
  • Risk analysis and critical success factors
  • Understanding of the concept of risk management, how to use a variety of derivative financial strategies to manage risk. Learn how hedging can positively affect an organization’s risk exposure
  • Formulation and implementation of the risk management strategies that are consistent with corporate goals


Course Calendar

TopicLectureResourcePage
Introduction1Handout3
Understanding the Word “Credit”2Handout5
Credit History3Handout7
Credit Rating4Handout9
Principles for the Management of Credit Risk5Handout12
Credit Administration, Measurement and Monitoring Process6Handout14
Quiz No:01
Establishing an Appropriate Credit Risk Environment7, 8Handout17-20
Credit Administration, Measurement and Monitoring Process9Handout21
Credit Administration, Measurement and Monitoring Process10Handout24
Credit Administration, Measurement and Monitoring Process11Handout26
Market and Liquidity Sensitive Credit Exposures12Handout29
Basic Situation of Credit Approval Process13Handout31
Basic Situation of Credit Approval Process14Handout34
Object of Review and Exposure Management15Handout36
Graded Discussion Borad
Data Collection16Handout38
Credit Review & Valuation of Collateral17Handout40
Credit Review and Valuation of Collateral18Handout42
Exposure Assesment19Handout45
Credit Decision-Making Structure20Handout47
Risk Weights for Non-Central Govt. Public Sector Entities21Handout49
Counterparty Risk Weights of OTC Derivative22Handout52
Mid Term Exams
Qualitative Disclosures23Handout54
Credit Risk Mitigation in the Standardized Approach24Handout56
Operational Requirements for Guarantees25Handout59
Credit Risk - The internal rating based approach26Handout62
Operational Requirements and treatement of clean up calls27Handout65
Key Principles of Supervisory Review28Handout68
Supervisory Transparency & Accountability29Handout71
The Role of Financial Adviser & Credit Risk30Handout74
Risk in our Society31Handout77
Risk Management32Handout82
Advanced Topics in Risk Management33Handout87
Marketing Systems in Life Insurance34Handout92
Insurance and Risk35Handout96
Definition of the “Insured”36Handout100
Personal Auto Policy Basics37Handout103
Auto Insurance and Society38Handout107
ISO Commercial Property Program39Handout111
Commercial Liability Insurance40Handout116
Crime Insurance and Surety Bonds41Handout122
The Nature and Importance of Credit Risk & Insurance42Handout126
Financial Development and Economic Growth43Handout131
Non-Life Insurance44Handout135
Recap45Handout140
Final Term Exams
 
 
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