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Introduction to Credit Risk Fundamentals

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  • Outline ImageCourse Outline
  • Scheduled ImageScheduled Dates

Overview ImageCourse 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.
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Overview ImageCourse 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
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Overview ImageSchedule & Fees

3 For 2Offer

Get the most out of group training with our special discount! Register 3 of your participants together on the same course and only pay for 2.

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Date: 07 - 11 Jul 2025

Duration: 5 Days

Venue: London

Price: $5,300

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Date: 25 - 29 Aug 2025

Duration: 5 Days

Venue: Barcelona

Price: $5,300

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Date: 17 - 21 Nov 2025

Duration: 5 Days

Venue: London

Price: $5,300

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Introduction to Credit Risk Fundamentals

Introduction to Credit Risk Fundamentals

Date: 17 - 21 Nov 2025
Duration: 5 Days
Venue: London
Price: $ 5,300
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Introduction to Credit Risk Fundamentals

  • United KingdomLondon
  • calendar17 - 21 Nov 2025
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Introduction to Credit Risk Fundamentals

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  • United KingdomLondon
  • 17 - 21 Nov 2025
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