Credit risk management continues to constitute the greatest challenge to banks, other lenders and regulators worldwide. As witnessed by the Enron debacle and a number of other credit surprises, upgrading knowledge in new credit techniques is a serious issue in the international banking community.

This course on credit risk management is designed to give participants the skills and strategies to render wise credit decisions and manage lending portfolios as they face new challenges. You will take away the required tools to anticipate problems that arise daily to minimise credit risk. This programme will focus on advanced cashflow dynamics, specialised lending decisions and the issue of recovery versus default. Thereafter, the focus shifts to loan portfolio management techniques. 

How will this course will assist you?

On Completion for this course, you will be able to:

• Better manage loan portfolios using sophisticated state-of-the-art credit tools designed to reduce credit risk rate and price loans.
• Risk grade and price loans utilising interactive computer systems based on RAROC, incorporating simulations and optimisation techniques, and using expected loss statistics to allocate capital against the loan portfolio.
• Manage and optimise an asset portfolio with new quantitative and qualitative structures for monitoring credit risk including employing and pricing credit derivatives, options, and datamining (computerised)

All those involved with credit risk, including:

• Credit Managers
• Credit Analysts
• Treasury Managers
• Risk Analysts
• Financial Analysts
• Corporate Bankers
• Investment Bankers
• Corporate Lending Officers
• Research and Ratings Personnel
• Portfolio Managers
• Bank Regulators
• Management & Strategy
• Venture Capital Executives

Conceptual Approaches to Credit Risk Modeling:

• The applications and hurdles in credit risk models
• The distribution of credit losses
• Conditional Vs. Unconditional models
• The approaches to credit risk aggregation
• The correlation between credit events    

CreditMetrics

• Introduction to CreditMetrics framework
• Process followed to evaluate credit risk
• Three powerful applications of CreditMetric        

Credit Risk

• Credit risk management framework
• Credit Risk model and its components
• Stages in CreditRisk modeling process
• Applications of Credit Risk

Portfolio Manager

• Distance-to-default
• Expected default frequency
• Advantages and weakness

Credit Portfolio View

• Methodology followed by Credit Portfolio View
• Its default prediction model
• Its default prediction model

Credit Portfolio Management

• Portfolio theories
• Traditional Vs. modern credit management approach
• Credit risk management tools
• Comparison of credit risk model
• Credit derivatives and asset securitization            

A variety of methodologies will be used during the course that includes:

·         (30%) Based on Case Studies

·         (30%) Techniques 

·         (30%) Role Play

·         (10%) Concepts

·         Pre-test and Post-test

·         Variety of Learning Methods

·         Lectures

·         Case Studies and Self Questionaires

·         Group Work

·         Discussion

·         Presentation

This rate includes participant’s manual, Hand-Outs, buffet lunch, coffee/tea on arrival, morning & afternoon of each day.

Daily Course Timings:

    08:00 - 08:20       Morning Coffee / Tea

    08:20 - 10:00       First Session

    10:00 - 10:20       Coffee / Tea / Snacks

    10:20 - 12:20       Second Session

    12:20 - 13:30       Lunch Break & Prayer Break

    13:30 - 15:00       Last Session