In the Credit Risk course
participants will re-cap on key issues risk. Focusing on case study driven for
the strategies of lenders like (5 CS of Credit, Debt Covenants and Disbursement
monitoring)
Identify Credit Risk.
Recognize Rating agencies process.
Define the key methodology to construct a formal internal risk-based credit rating process.
Categorize qualitative and quantitative assessment.
Define each characteristic in the 5 Cs of credit framework.
Discuss how the 5 Cs of credit are used to assess the borrower.
Identify the key credit strengths and weaknesses of a company by examining various sources of information.
Determine the key concepts of covenants in a loan agreement.
Differentiate between the types of loan covenants.
Account Monitoring and Warning Signs.
Identify the factors that can lead to financial distress (e.g., economic conditions, sector deterioration, broken business models, lack of liquidity and inappropriate funding structure.)
Evaluate the signals of credit deterioration and the degree of downside protection.
Confirm signals of deterioration and consider potential actions/reactions.
Evaluate a company’s existing capital structure to assess potential recovery rates.
Define the processes of securitization and risk transfer.
Apply provisioning, stress testing, scenario analysis monitoring and risk mitigation.
Assess risk rating transition matrix.
Evaluate expected credit loss, probability of default, loss given default and exposure at default.
Incorporate the relationship between macroeconomic indicators and the expected losses.
Credit Risk
overview.
Rating
agencies rating grades and process.
Internal
rating-based system.
Credit Risk
modeling (Scoring system).
The 5 Cs
(Character, Capacity, Capital, Collateral, and Conditions).
5 Cs impact
on pricing, loan structure risk mitigation.
5 Cs
collectively and balance.
Covenants
definitions.
Types of
covenants.
Calculations
of financial covenants.
Factors of distressed
assets.
Potential
actions and reactions.
Capital
structure evaluation and potential recovery rates.
Securitization
and risk transfer.
Provisioning.
Rating
transition matrix.
Expected
Credit Loss, Probability of Default, Loss Given Default and Exposure at
Default.
Risk Officers and analysts.= Non-performing Loans Officer and analysts.= Credit Portfolio manager.= Corporate & Retail Credit Officers and analysts. Risk management
