• Role of Credit Risk Management in lending decisions.
• Basel Norms
• Selection of an obligor.
• To read a Balance sheet to mitigate Credit risk.
• To understand Cash Flow, Fund Flow and Ratio analysis

Using Credit Risk management for Strategic decision making, managing Credit Portfolio and understanding Credit Rating System .

The course is structured in six modules, with each module catering to a separate risk domain.

Introduction

* About the course

* Brief Objectives

* Relevance

Module 1: Principles of Risk Management:

* Introduction to Credit Risk Management:

* Classification of Credit Risk – Credit Spreads

* Credit Risk assessment tools

* Types and mitigants of Concentration and Transaction Risk Management

* Micro & Macro Business environment

Module 2: Basel Accords and its implications; Credit Risk Loss Distribution;

* Credit Risk Models Basel I/II/III/IV Guidelines

* Approaches of Credit Risk

* PD, LGD, EAD, CEL

* External Ratings

* Credit Scoring and Retail Credit Risk Management

* Credit Derivatives

Module 3: Credit process, credit selection

* Credit Analysts Skills/Role

* Credit risk in selection of borrower

Character, Capacity, Collateral, Capital and Condition ***

Counter Party Credit Risk. ***

Module 4: * * Application of Credit Risk Measurement: Reading financial Statement and Economics of Credit __**

* Basic Accounting Principles and Concepts

* Accounting Standards

* Financial Statement Analysis, Profit and Loss account / Balance Sheet

Module 5: Credit Risk management – Mitigation tools

* Financial Assessment Tools

* Trend Analysis

* Ratio Analysis

* Cash Flow Statement

* Fund Flow Statement

Module 6: Strategic credit decision making, management of Credit Portfolio and Credit Rating System

* Selection of Collateral

* Negotiation for Covenants

* Spread Risk, Portfolio Credit Risk, Structured Credit Risk

* Various Credit Risk Models,

Risk Adjusted Return on Capital & Return on Risk Weighted Assets ***

Capital Asset Pricing Model (CAPM), Weighted Average Cost of Capital