This 5-day intensive course offers a comprehensive certification in Credit Risk Management. Participants will explore the fundamentals of credit risk assessment, measurement, and mitigation. The course provides in-depth knowledge of credit risk models, regulatory requirements, and best practices for managing credit risk. Practical exercises and case studies will help participants apply theoretical concepts to real-world scenarios and prepare for certification.
Target Audience
• Credit risk managers and analysts
• Financial risk professionals
• Credit officers and loan managers
• Compliance and audit professionals in financial institutions
Course Objectives
• To understand the core principles and methodologies of credit risk management
• To develop skills in assessing and measuring credit risk using various models and tools
• To apply regulatory requirements and best practices in credit risk management
• To implement strategies for credit risk mitigation and portfolio management
• To prepare for certification and apply knowledge to practical credit risk scenarios
Day-by-Day Course Outline
Day 1: Introduction to Credit Risk Management
• Overview of credit risk management: Definition, importance, and objectives
• Types of credit risk: Default risk, credit spread risk, and counterparty risk
• Credit risk assessment process: Creditworthiness evaluation and risk profiling
• Case study: Assessing credit risk for a hypothetical lending scenario
Learning Outcome:
Participants will gain a foundational understanding of credit risk management principles and the credit risk assessment process.
Day 2: Credit Risk Measurement and Modelling
• Credit risk measurement techniques: Probability of Default (PD), Loss Given Default (LGD), and Exposure at Default (EAD)
• Introduction to credit risk models: Credit scoring models, logistic regression, and machine learning approaches
• Implementing and validating credit risk models: Model development, backtesting, and calibration
• Practical exercise: Developing a basic credit risk model and interpreting results
Learning Outcome:
Participants will learn how to measure and model credit risk using various techniques and tools.
Day 3: Regulatory Requirements and Compliance
• Overview of credit risk regulations: Basel III, IFRS 9, and other relevant standards
• Credit risk reporting requirements: Disclosures, stress testing, and capital adequacy
• Compliance strategies: Implementing controls and ensuring adherence to regulatory standards
• Case study: Applying regulatory requirements to a credit risk management scenario
Learning Outcome:
Participants will understand the regulatory landscape for credit risk management and how to ensure compliance with relevant standards.
Day 4: Credit Risk Mitigation and Portfolio Management
• Strategies for credit risk mitigation: Collateral, credit derivatives, and diversification
• Managing credit risk in a portfolio: Risk-adjusted returns, concentration risk, and portfolio optimisation
• Techniques for monitoring and controlling credit risk: Early warning systems and risk limits
• Workshop: Developing a credit risk mitigation strategy and managing a credit portfolio
Learning Outcome:
Participants will develop skills in mitigating credit risk and managing credit portfolios effectively.
Day 5: Advanced Topics and Certification Preparation
• Advanced credit risk management topics: Emerging risks, fintech innovations, and global credit risk trends
• Best practices for credit risk management: Internal controls, risk management frameworks, and continuous improvement
• Preparing for certification: Review of key concepts, exam format, and study strategies
• Group project: Applying all course elements to a comprehensive credit risk management scenario
• Course wrap-up and feedback session
Learning Outcome:
Participants will be prepared for certification and equipped with advanced knowledge and best practices in credit risk management.
By the End of the Course, Participants Will Learn:
• Core principles and methodologies of credit risk management
• Techniques for measuring and modelling credit risk
• Understanding of regulatory requirements and compliance strategies
• Preparation for certification and practical application of credit risk management concepts
• Strategies for credit risk mitigation and portfolio management
Course Delivery Methods
• Expert-led lectures and interactive presentations
• Hands-on exercises and practical case studies
• Workshops on credit risk modelling and mitigation strategies
• Group projects for applying course concepts to real-world scenarios
• Certification preparation and review sessions
Course Dates and Venue locations:
The Certificate:
After attending and completing the entire ARUK training course, delegates will be issued a Certificate of Completion.
