Participants will gain a 360 degree understanding of Credit Risk, including components of credit risk, their measurement and monitoring.
The programme will equip the participants to take a holistic approach to credit underwriting by understanding the risk dependencies, risk manifestation and mitigation.
The tools and techniques provided in the programme will help participants to look beyond the numbers and financial ratios as part of credit appraisal process.
Target audience
Credit underwriters, particularly Senior Credit Managers, Area Credit Managers and Regional Credit Managers in Banks, NBFCs and Financial Institutions
Course Content:-
Session 1
Overview of the lending eco-system
• Global credit scenario – growth, stress and key drivers of credit risk
• Indian credit eco-system - Structure, size, growth, stress, prospects and key drivers of risk
Session 2
Basics of credit risk & its quantification on Profit & Loss
• Understanding credit risk and its criticality to lenders
• Credit risk components, credit risk for on- and off-balance sheet items
Session 3
Credit rating systems
• Introduction to credit ratings and definition of default
• Credit rating scales – short- and long-term scales
Session 4
CRISIL’s credit risk evaluation framework
• CRISIL’s framework for credit ratings
• Three pillars – business, management and financial
Session 5
Business risk analysis
• Business risk evaluation – going beyond numbers and looking for sustainability
• Importance of macro factors and industry risk
Session 6
Management or promoter risk assessment
• Evaluating competence and track record of promoters
• Assessing risk appetite
Day 2:
Session 7
Financial analysis
• Key ratios for assessing credit risk and financial adjustments required
Trainer is a senior ex-banker with more than 25 year experience in banking industry working with Public & private sector banks. He has worked extensively in the area of Credit Assessment for Small and Medium Enterprises (SME), Foreign Exchange, Trade Finance, Corporate & Commercial Banking, Retail Banking. He was also leading Debt Collection Logistics and Intelligence Cell and Fraud Risk Containment Unit
