Course OverviewThe credit risk management definition has widened given the growing number of risks / financial institutions, Sovereign Wealth Funds &  banks must manage and the importance of risk management policy has increased. However, mitigating losses associated with the non-payment of loans made to businesses and people is a primary responsibility. Credit risk management can be summed up as how a bank and other lenders measures, manages, and monitors its exposures to achieve a desired return on its capital. Credit risk managers are tasked with making decisions that impact the composition and performance of the loan portfolio
Training DurationTotal Training Hours : 30 Hours
Training Duration : 1 Week
Total Training Days : 5 Working Days
Training SchedulesWeekdays (Sunday to Thursday)
Regular Sessions : 6 Hrs Per day (9am to 2pm or 3.00pm to 9.00 pm)
Food & refreshments Included

WeekEnds (Friday & Saturday)
Fast Track Sessions: 8 Hours per day (9am to 5pm)
Food & refreshments Included
Certifications:1) Certificate from Laurels Training Institute, Attested by Knowledge & Human Development Authority (KHDA) government of Dubai, UAE

2) Certificate from American Institute of Professional Studies (AIPS) from USA (After 15 Days of course Completion which will couriered to the attendees office address)
Learning AidsYes
Course MaterialHard & Soft Copies of Study Material
Language of InstructionEnglish
Instructor HelplineYes
1. Email
2. Social Media (For Emergency requirements)
Registration Requirements1. Passport Copy
2. Curriculum Vitae
3. Passport size photographs
4. Course Fee
Mode of Payment:Cash / Cheque / Credit Card / Bank Transfer.
Eligibility Criteria
(Who should attend this training)

1) Bankers

2) Risk Officers,

3) External and Internal Auditors,

4) Anyone who wants to learn the credit risk concepts and risk modeling techniques,

5) Graduate and undergraduate students in business, finance, accounting, banking and the other related disciplines who want to join banking sector
Course Benefits

1.More confident in dealing with colleagues and associates in the risk field

2.Gain new approaches to minimizing credit risk

3.Learn how to accurately spot and measure credit risk exposures to third parties

4.Key concepts in credit risk and the range that makes up the risk spectrum.

5.Risk Identification, risk weightage and measurement – credit risk ratings and financial statement 6.analysis, including key accounting concepts and commonly used financial ratios

7.How credit risk is monitored and controlled – the role of documentation and collateral in the risk equation

8.Cash flow lending approaches – when collateral is short or unavailable

9.Issues in the identification and management of troublesome loans
Course Contents / Outline

Risks faced in Banking Sector, Risk Identification,

What are the reasons for risks in banking industry?

Risks faced by banks,

Credit Risk and why is it important for a bank?

Risks associated with lending activities,


Credit culture and risk profile,

How the credit crunch and its origins has affected our approach to credit risk?

Definitions of default,

Default probability recovery rates, LGD and exposure at default

Impact of credit risk on the bank’s balance sheet, income statement, cash flow statements, and equity prices

Ratings agents approach to credit risk

Lessons to be learned from the credit crunch


Credit Risk Analysis and Modeling, Risk Assessment

What information is required for credit risk analysis?

Credit risk assessment tools.

Customer risk assessment versus credit portfolio risk assessment,


Modern approach to assessing credit risk,

Portfolio risk and return,

Probability of default, rating models

loss given default

Exposure at default

correlation of default


Credit risk on portfolio level vs single transaction

Loss distributions and relationship to expected loss, worst credit loss, economic and regulatory capital definitions.

Computer Workshop Spreadsheet exercises for simple portfolio credit model

Introduction to portfolio credit risk models; CreditRisk+, CreditMetrics,

Optimizing portfolios for best risk/return

Tail risk


Controlling Credit Risk, Risk Mitigation

Loan policy issues,

Strategic planning for the loan portfolio,

Loan portfolio objectives,

Structured finance, Financial Covenants, Collateralization, Syndication, Limitation.

Securitization and Risk Transformation,

Techniques for moving risk off balance sheet, CDOs and other tranche products

Pros and cons of securitization for origination firms and investors,

The role of rating agencies


Credit Risk Reporting, Risk Monitoring

Risk Asset Review Reports,

Early warning systems,

Capture asset quality migrations,

Trigger Actions (i.e. planning credit enhancement, reduction in exposures, exit strategy).

Stress Testing


Credit Risk Based Calculations

Risk-based pricing,

Risk-based provisioning and capital requirements.

Regulatory capital under Basel I

Regulatory capital under Basel II

Changes under Basel III

Standardized approach

Foundation internal ratings-based approach
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