Credit Risk Management in Banking

Overview

Credit risk, being the oldest form of financial risk, has persisted since ancient times, and despite its historical presence, effective management remains an ongoing challenge, evident in frequent high-profile losses reported in the media. This course is designed to furnish participants with a comprehensive understanding of credit risk and the methodologies for its effective management.

Credit risk management is a critical function in the banking sector that involves identifying, assessing, and mitigating the risks associated with lending activities to ensure the financial stability and profitability of financial institutions. The "Credit Risk Management in Banking" course is designed to provide professionals with a comprehensive understanding of credit risk management principles and techniques specific to the banking industry. Geared towards credit risk managers, bankers, financial analysts, and regulatory professionals, this course offers essential knowledge and practical skills to effectively manage credit risk within banking institutions.

Throughout the course, participants will delve into fundamental topics related to credit risk management, including credit risk assessment methodologies, credit scoring models, credit portfolio management, and regulatory requirements. Emphasis is placed on understanding the principles of credit risk measurement, such as probability of default (PD), loss given default (LGD), and exposure at default (EAD), and how these metrics are used to assess and manage credit risk exposure.