Credit Risk Analysis and Rating (For Bankers)
What you'll learn
- Be confident in risk profiling credit
- Be confident in choosing the right borrower depending on his risk profile
- Understand how to practically infer from financial ratios, how to structure a good credit deal with risk safeguards
- Be better prepared to appear for credit certifications of Moody's Analytics or IIBF with more than 100 questions to test your understanding
- Basic finance knowledge
- English subtitle (Customized) is available for the entire course. Don't forget to turn it on as and when needed.
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?
Get the foundation to credit risk analysis
Be confident in deciding the right borrower depending on its risk profile
How to correctly structure a credit deal
Be better prepared to appear for credit certifications of Moody's Analytics or IIBF
Extensive practice test to test your understanding
Who is this course for?
Bankers handling credit
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
The Origin of Credit Risk and Risk Calculation Approaches
What are Obligor Risk and Facility Risks ( PD, LGD, EAD)
How ratings are done and why external ratings important
Relationship of Credit Ratings with other aspects of credit
Credit Risk Analysis and Credit Lending - Relationship
Industry and Business Risk
Real examples of how external factors affect the industry and business risk
Industry risk position of a few common industries
Life Cycles of businesses and industry
Factors affecting industry and business risk - with real life examples
Real life case study of assessing management risk
Factors determining management risk using real examples
Ratio Analysis, Assessment of loan and Facility Structure- How they are different but connected
Turn Over Ratio
Non Ratio terminologies - Tangible Net Worth, Adjusted/Effective Tangible Net Worth, Quasi Equity, Capital expenditure
Solvency Ratio/ Leverage ratio and understanding Liquidity/ Solvency Matrix
Projections- What to accept and what to not?
Factors determining Loss Given Default (LGD)
Exposure at Default (EAD)
Deal Structure and Internal Monitoring Plan
Deal Structure Vs Facility Structure - Difference
Understanding Deal Structure
Factors determining a good deal structure
Deal Structure Creation and implementation
Internal Monitoring Plan
Covenants for sanction
More than 100 questions to test your understanding
Who this course is for:
Aspirants of credit certifications of Moody's Analytics or IIBF
Who this course is for:
- Credit officers
- Branch Managers
- Aspirants of credit certifications of Moody's Analytics/ IIBF
Everyone has their own way learning, I learnt Credit out of my experience (13 years), interaction with seniors, certifications like CICC from Moody's Analytics and CCP from IIBF.
And of course mistakes. Yes, I did plenty of them in the process of learning. That actually helped me to move from one level to another because I ensured not to repeat them.
My contents are not like any other training materials that teach you theory. They are tailor-made products meant to handhold bankers and help them to avoid mistakes at their workplace.
Something with which bankers can relate themselves and apply in their day-to-day work, to get the desired business result at the same time save their own seat (SOS).