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Understanding Credit Risk Measurement

In this eLearning module on Understanding Credit Risk Measurement, you will learn about the components of Credit Risk and how to calculate these components, such as PD and Default Rates, EAD, LGD and other components. We will also learn how these components impact Credit Risk measurement.

 

Coverage and structure for eLearning module

 

Topic

Sub-topic

Overview of Credit Risk Measurement
  • What is Credit Risk
  • When does Default Occur
  • Impact of Credit Loss
  • Need for Credit Risk Measurement
  • Credit Risk Components

Probability of Default (PD)
  • What is PD
  • Static Pool Approach for Calculating PD
  • Calculating One-year PD
  • Marginal and Cumulative Default Probability
  • Calculating Cumulative Default Probability
  • Credit Rating Dimensions
  • Rating Transition and Migration
  • Analysis of Rating Transition Matrix
  • Methods of Estimating PD
  • Challenges in PD Estimation and Application

Exposure at Default (EAD)
  • What is EAD
  • Estimation of EAD for Loans
  • Estimation of EAD for Revolving Credit
  • Estimation of EAD for Off-balance Sheet Exposure
  • Challenges in EAD Estimation

Loss Given Default (LGD)
  • What is LGD
  • Methods of Estimating LGD
  • Calculating LGD Using Workout Method
  • Downturn LGD Estimation
  • Challenges in LGD Estimation

Other Components of Credit Loss
  • Effective Maturity
  • Correlation
  • Credit Loss

 

 

Module Fees: Rs. 2500/-                                  Access period: 3 months                                 Learning time: 3 hours

 

 

Steps to purchase

 

  • Go to CRISIL Learning platform https://training.crisil.com/
  • On https://training.crisil.com/ (CRISIL Learning platform) – sign up to create your unique login ID and password
  • Once your account is set up, search for "Understanding Credit Risk Measurement" from the search bar
  • Select the e-learning module - Understanding Credit Risk Measurement, and click on buy now; it will get added to your cart
  • Click on 'Cart' and purchase the module(s) with your debit or credit card
Detailed steps

Features of eLearning modules:

 

 

Real life case studies

 

Real life case studies built leveraging our expertise in research, ratings & risk solutions

 

Expert Speak

 

Insights incorporated in eLearning, based on 15+ years of classroom training experience

 

Glossary & Resources

 

End to end structure comprising basic definitions to advanced readings

 

Visuals for workflows

 

Use of visuals to show a complex process or workflow

 

Interactive examples

 

Interspersed with practice exercises and interactive examples to help apply concepts

 

Knowledge checks

 

Knowledge checks at the end of each topic to ensure absorption of concepts

 

Animations

 

Animations & Characters to make complex concepts easy to learn

 

Gamification

 

Final assessment questions & gamification at the end of the module to ensure learning objectives are met