Credit risk: loan by loan management
Understanding credit risk is key for any finance practitioner. It is a significant part of the business model and a financial institutions’ portfolio.
This course is designed to give you the essential insights to be able to identify, quantify and manage credit risk effectively.
After an introduction of what credit risk is and how it fits in the risk taxonomy of a financial institution, some real-world cases will be discussed as illustration.
The assessment of credit risk is examined with a focus on more specialised topics such as credit ratings, credit analysis, internal and external credit risk models for both single counterparties and portfolios. The course looks also at the management and optimisation of credit risk.
No such analysis would be complete without making the link with the latest regulatory and innovative developments.
Total price *
Members: € 570
Non-members: € 685
Partners/ BZB: € 570
Incompany: tailor-made, prices on request
* Price: service in the context of continuing professional training, exempt from VAT
Please let us know you're interested in this training should there be no date available, the planned date does not suit you and/or this session is full. As soon as about 5 people are registered on the interest list, we will propose a new course date. Your registration on the interest list is free of charge and without any obligation.
Target group
This training is intended for various target groups active in business, credit risk, ALM, finance and capital markets
Required prior knowledge
Expert level: Subjects will be treated thouroughly. You should have knowledge of macro-economical concepts.
Programme
1. Credit Risk – Definition & main types
- Default, spread, counterparty, settlement
- Retail (mortgage, credit card, consumer), SME and wholesale exposure
- Importance of credit risk in the financial world
2. Credit Default Risk – Assessment
- Internal & external credit risk analysis (bank level + rating agencies)
- Internal & external credit rating models
3. Managing Credit Risk – Credit Risk Mitigation
- Reducing exposure and increasing recoveries: Netting, Collateral, Guarantee, Covenants
- Risk transfer to external investors: Credit Derivatives, Securitization, Loans Sales
4. Credit Risk in the Basel Accord:
- Credit risk parameters
- Standardised, IRB Foundation and Advanced
- RWA Calculation (high level)
- Differences between accounting (IFRS9) and regulatory approaches
- Main changes expected in the upcoming Basel 4 review
5. Credit Process for loan-by-loan management (end-to-end):
- Origination, analysis, pricing, loan approval
- Risk (surveillance,) monitoring, work out (recovery)
- Tools to support the process
6. Data governance and data quality
7. Recent developments: business cases of Fintech, AI and Machine Learning
8. Appendices
- Definition of default
- Example of credit scoring mode
- PD model development (different steps and validation)
- RWA calculation
PRACTICAL INFORMATION
Duration: 1 day training
Hours: 9am - 5pm
Adress: This training will be given online
Extra information: This training will be given in English!
Methodology
You follow a ‘Live webinar’ digitally in a group. It is ‘learning-apart-together’. At an agreed time, the teacher and participants log in to a video conference tool, each from his or her own location and with his or her own computer. Via this tool’s camera, microphone and chat function, there is an opportunity for interaction and feedback, both from the participants to the teacher and vice versa. The teaching material consists as a basis of a presentation via the MyFA learning platform, supplemented with various other items (such as digital syllabus, presentation, audiovisual fragments, etc.).
Type of course: Online, blended learning
During our theoretical training courses we offer a combination of theory and practical exercises. The cases, examples and exercises are taken from everyday situations or are contributed by you and then solved under the guidance of the trainer.
Teaching Material: Powerpoint presantation (slides)
Teachers
Ruben Olieslagers
Risk, finance & treasury
Compliance & audit
