Introduction to Credit Risk Fundamentals

Credit risk is the potential for financial loss if a borrower fails to repay a debt. This course provides a fundamental understanding of credit risk, its various forms, and the essential principles and techniques used to assess and manage it. Participants will gain insights into lending policies, credit analysis, and the frameworks used to mitigate potential losses for lenders.

By the end of this programme, participants will be able to:

• Define Credit Risk and Its Key Components: Understand the nature of credit risk and its potential impact on lenders.
• Identify Different Types of Credit Risk: Recognise the various categories of credit risk across different sectors.
• Explain Basic Lending Principles and Policies: Understand the foundational elements of the lending process.
• Apply Fundamental Credit Analysis Techniques: Utilise basic financial ratios and vertical/horizontal analysis.
• Describe Key Credit Risk Assessment Frameworks: Understand the principles behind the 5 Ps and 5 Cs of credit.
• Recognise the Role of Regulatory Frameworks: Understand the basic principles of the Basel Accords.