Credit is Now the World's Largest Market, with Its Size Estimated in Trillions of Dollars - Get Key Insights into the Key Risk Management Issue in Recent Years
DUBLIN, Ireland -- Research and Markets (http://www.researchandmarkets.com/reports/c28962) has announced the addition of E-Learning Course: Credit Risk to their offering.
This course examines in detail the concept of credit risk, the most significant risk faced by banks and the one against which they hold the most regulatory capital. Topics covered in the course include the sources of credit risk in the banking and trading books of financial institutions, the factors behind it, the analysis of credit risk, mitigation techniques for this form of risk and credit risk modelling.
In this course, you will explore:
--The sources of credit risk
--Credit risk ratings
--The concepts of probability of default (PD), loss given default (LGD) and exposure at default (EAD)
--Ratio analysis, credit scoring and other techniques used to assess credit risk
--Credit risk modeling, including the leading methodologies available in the market (CreditMetrics, CreditRisk+ and Moodys KMV)
--Mitigation techniques such as netting, collateral and guarantees
The following tutorials are included in this E-Learning course:
1. Credit Risk - An Introduction
The risk of a counterparty not fulfilling their obligations on the due date is a risk that affects any business enterprise. Credit risk is also the risk to which financial regulators pay closest attention as it is the most significant risk faced by banks.
This tutorial introduces the concept of credit risk, its sources in the banking and trading books of financial institutions, the factors behind it, and how it is rated.
2. Credit Analysis
Credit analysis is a critical activity for any lender. After all, would you really want to extend a large loan to someone if you thought they were unlikely to pay you back? Before extending credit to any borrower, you would assess their credit risk to determine the borrower's likelihood of default on the loan.
Credit analysis is performed on both personal and corporate loan/debt applications. In this tutorial, we will mainly concentrate on corporate credit analysis.
3. Credit Risk Modelling - An Introduction
In recent years, credit losses due to the bankruptcy of corporate giants and the Argentine default have been regularly featured in the news. These events, along with other factors such as Basel II, have resulted in financial institutions increasing their focus on credit risk management. Much of the spotlight has been on the use of models to measure credit risk.
This tutorial introduces the concept of credit risk modelling and provides the necessary background for the subsequent tutorials on the different credit risk models used by banks.
4. Credit Risk Modelling - CreditMetrics
The rapid expansion of the credit market has created a need for credit risk management. Financial institutions are continually looking for better tools to evaluate and manage credit risk.
CreditMetrics, first launched by JP Morgan Investment Bank in 1997, adopts a portfolio-based approach to credit risk management. It evaluates credit risk by predicting movements in the credit ratings of the individual investments in a portfolio. This tutorial outlines the functions and features of the CreditMetrics credit risk management model.
5. Credit Risk Modeling - CreditRisk+
CreditRisk+ is a statistical credit risk model that estimates the distributed risk of default across all the items in a credit portfolio. It was launched by Credit Suisse First Boston (CSFB) in 1997 to provide a forward-looking approach to credit risk management. This tutorial outlines the CreditRisk+ methodology and its applications.
6. Credit Risk Modeling - KMV & Comparison of Models
Moody's credit risk methodology, MKMV, is based on the Merton asset value model for assessing the credit risk of a corporation. MKMV produces default probabilities known as Expected Default Frequencies (EDF) for each obligor it evaluates. The EDF figure can then be used to estimate the standalone credit risk of an obligor or the value at risk (VAR) in a portfolio.
This tutorial introduces the EDF methodology and shows how EDF figures translate to actual credit risk values. In addition, the three main credit risk models are compared.
7. Credit Risk - Mitigation
Credit is now the world's largest market, with its size estimated in trillions of dollars. As a result, credit risk and its management have become perhaps the key risk management issue in recent years. Credit risk mitigation can be described as a set of techniques whose goal is to reduce the probability of default, reduce the exposure to risk, and increase the recovery rate. This tutorial looks at a number of different ways in which institutions can mitigate their credit risk.
For more information visit http://www.researchandmarkets.com/reports/c28962