Introduction to Credit Risk Fundamentals

Overview
Course Outline
Scheduled Dates

Course Overview

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.

Objective:

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.

Course Outline

Day 1: Introduction to Credit Risk and Lending Principles

Welcome and Course Overview
What is Credit Risk? Definition, Impact, and Key Components
The Different Types of Credit Risk: Sovereign, Corporate, Retail, Systemic
Basic Lending Principles: Understanding the Lender-Borrower Relationship

Day 2: Lending Policies, Processes, and Information

Lending Policies, Lending Strategies, and Lending Systems: An Overview
Data and Information Collection for Credit Assessment
Approvals, Security, and Drawdown Procedures: Key Stages in Lending
Management and Monitoring Systems for Loan Portfolios

Day 3: Understanding Different Lending Products and Markets

Loans and Overdrafts: Key Features and Risk Considerations
An Introduction to Bonds: Government and Corporate
Mortgages and Credit Cards: Fundamental Aspects of Retail Credit
Trade Finance: Basic Concepts and Credit Exposure

Day 4: Fundamental Credit Analysis Techniques

Credit Ratios Analysis: Liquidity, Profitability, Financial Leverage (Introduction)
Credit Vertical Analysis: Analysing Balance Sheet and Income Statement Components
Credit Horizontal Analysis: Identifying Trends in Financial Statements
Introduction to Credit Risk Models: Z-Score (Overview)

Day 5: Frameworks for Credit Risk Assessment and Regulation

Credit Risk 5 Ps: People, Purpose, Payment, Protection, Perspective
Credit Risk 5 Cs: Character, Capacity, Capital, Collateral, Conditions
CAMEL and its Relevance to Credit Risk Assessment (Introduction)
The Basel Accords: A Basic Overview of Regulatory Capital Requirements

Schedule & Fees

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$5,300

Duration: 5 Days

date: 07 - 11 Jul 2025

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date: 17 - 21 Nov 2025

Finance and Accounting

Introduction to Credit Risk Fundamentals

Duration:5 Days

date:07 - 11 Jul 2025

London

$5,300

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