Credit Risk Analysis and Rating (For Bankers)

Description

- English subtitle (Customized) is available for the entire course. Don't forget to turn it on as and when needed.

Dear Bankers,

Are you someone who is new to credit?

Are you someone who has the responsibility of handling large credit but don't have the necessary training to handle it confidently?

If you aspire to enter into the Credit Vertical of your bank that may be appraisal, rating, monitoring then please note that now it is mandatory to complete at least one of the credit certificates recognized by RBI and Certificate in Commercial Credit from Moody’s Analytics and Certified Credit Professional from IIBF are two of those.

This course is intended to provide you a launching pad for those certificate programs.

We intend to cover these certificates in four separate courses and this is the first of the four.

We have carefully designed the course to keep it as concise as possible, covering the crucial concepts with real life examples. We have correlated the learnings with practical experience from branch banking so that you realize the implications of the concepts you are learning.

What will you get out of this course?

1. Get the foundation to credit risk analysis

2. Be confident in deciding the right borrower depending on its risk profile

3. How to correctly structure a credit deal

4. Be better prepared to appear for credit certifications of Moody's Analytics or IIBF

5. Extensive practice test to test your understanding

Who is this course for?

1. Bankers handling credit

2. Anyone preparing for mandatory credit certifications of RBI

Why should you enroll to this course?

This course is meant to give an holistic idea of credit risk analysis and credit rating.

It begins from the origin of credit risk analysis from BASEL II, why credit risk analysis is crucial and how it is related to the steps of credit lending. It explains industry and business risk, management risk using practical examples. Financial risk is explained using real excel used in banks and practical guidance is provided on how to read and infer from the values. Loss Given Default (LGD) and Exposure at Default (EAD) is explained using simple words in facility risk rating. Finally there is practical guidance on how to structure a credit deal in a way that there are safeguards if anything goes wrong with the lending

This tutorial is meant for anyone new in credit department or even new branch managers.

What this course covers?

The Starting Point

1. The Origin of Credit Risk and Risk Calculation Approaches

2. What are Obligor Risk and Facility Risks ( PD, LGD, EAD)

3. How ratings are done and why external ratings important

4. Relationship of Credit Ratings with other aspects of credit

5. Credit Risk Analysis and Credit Lending - Relationship

   
   

Industry and Business Risk

1. Real examples of how external factors affect the industry and business risk

2. Industry risk position of a few common industries

3. Life Cycles of businesses and industry

4. Factors affecting industry and business risk - with real life examples

Management Risk

1. Real life case study of assessing management risk

2. Factors determining management risk using real examples

Financial Risk

1. Ratio Analysis, Assessment of loan and Facility Structure- How they are different but connected

2. Liquidity Ratios

3. Turn Over Ratio

4. Non Ratio terminologies - Tangible Net Worth, Adjusted/Effective Tangible Net Worth, Quasi Equity, Capital expenditure

5. Solvency Ratio/ Leverage ratio and understanding Liquidity/ Solvency Matrix

6. Coverage ratios

7. Profitability Ratios

8. Projections- What to accept and what to not?

Facility Risk

1. Factors determining Loss Given Default (LGD)

2. Exposure at Default (EAD)

Deal Structure and Internal Monitoring Plan

1. Deal Structure Vs Facility Structure - Difference

2. Understanding Deal Structure

3. Factors determining a good deal structure

4. Deal Structure Creation and implementation

5. Internal Monitoring Plan

6. Covenants for sanction

Practice Test

More than 100 questions to test your understanding

Who this course is for:

• Credit Officers

• Branch managers

• Aspirants of credit certifications of Moody's Analytics or IIBF

TAKE THIS COURSE