Credit Risk Analysis and Rating (For Bankers)

Become confident in handling credit risk | Guidance to CICC certification of Moody's Analytics and CCP of IIBF - Part 1

4.37 (246 reviews)
Udemy
platform
English
language
Finance
category
1,305
students
3.5 hours
content
Oct 2022
last update
$59.99
regular price

What you will learn

Be confident in risk profiling credit

Be confident in choosing the right borrower depending on his risk profile

Understand how to practically infer from financial ratios, how to structure a good credit deal with risk safeguards

Be better prepared to appear for credit certifications of Moody's Analytics or IIBF with more than 100 questions to test your understanding

Description

- English subtitle (Customized) is available for the entire course. Don't forget to turn it on as and when needed.

Dear Bankers,

Are you someone who is new to credit?

Are you someone who has the responsibility of handling large credit but don't have the necessary training to handle it confidently?

If you aspire to enter into the Credit Vertical of your bank that may be appraisal, rating, monitoring then please note that now it is mandatory to complete at least one of the credit certificates recognized by RBI and Certificate in Commercial Credit from Moody’s Analytics and Certified Credit Professional from IIBF are two of those.

This course is intended to provide you a launching pad for those certificate programs.

We intend to cover these certificates in four separate courses and this is the first of the four.

We have carefully designed the course to keep it as concise as possible, covering the crucial concepts with real life examples. We have correlated the learnings with practical experience from branch banking so that you realize the implications of the concepts you are learning.


What will you get out of this course?

  1. Get the foundation to credit risk analysis

  2. Be confident in deciding the right borrower depending on its risk profile

  3. How to correctly structure a credit deal

  4. Be better prepared to appear for credit certifications of Moody's Analytics or IIBF

  5. Extensive practice test to test your understanding

Who is this course for?

  1. Bankers handling credit

  2. Anyone preparing for mandatory credit certifications of RBI

Why should you enroll to this course?

This course is meant to give an holistic idea of credit risk analysis and credit rating.

It begins from the origin of credit risk analysis from BASEL II, why credit risk analysis is crucial and how it is related to the steps of credit lending. It explains industry and business risk, management risk using practical examples. Financial risk is explained using real excel used in banks and practical guidance is provided on how to read and infer from the values. Loss Given Default (LGD) and Exposure at Default (EAD) is explained using simple words in facility risk rating. Finally there is practical guidance on how to structure a credit deal in a way that there are safeguards if anything goes wrong with the lending

This tutorial is meant for anyone new in credit department or even new branch managers.

What this course covers?

The Starting Point

  1. The Origin of Credit Risk and Risk Calculation Approaches

  2. What are Obligor Risk and Facility Risks ( PD, LGD, EAD)

  3. How ratings are done and why external ratings important

  4. Relationship of Credit Ratings with other aspects of credit

  5. Credit Risk Analysis and Credit Lending - Relationship


Industry and Business Risk

  1. Real examples of how external factors affect the industry and business risk

  2. Industry risk position of a few common industries

  3. Life Cycles of businesses and industry

  4. Factors affecting industry and business risk - with real life examples

Management Risk

  1. Real life case study of assessing management risk

  2. Factors determining management risk using real examples

Financial Risk

  1. Ratio Analysis, Assessment of loan and Facility Structure- How they are different but connected

  2. Liquidity Ratios

  3. Turn Over Ratio

  4. Non Ratio terminologies - Tangible Net Worth, Adjusted/Effective Tangible Net Worth, Quasi Equity, Capital expenditure

  5. Solvency Ratio/ Leverage ratio and understanding Liquidity/ Solvency Matrix

  6. Coverage ratios

  7. Profitability Ratios

  8. Projections- What to accept and what to not?

Facility Risk

  1. Factors determining Loss Given Default (LGD)

  2. Exposure at Default (EAD)

Deal Structure and Internal Monitoring Plan

  1. Deal Structure Vs Facility Structure - Difference

  2. Understanding Deal Structure

  3. Factors determining a good deal structure

  4. Deal Structure Creation and implementation

  5. Internal Monitoring Plan

  6. Covenants for sanction

Practice Test

More than 100 questions to test your understanding


Who this course is for:

  • Credit Officers

  • Branch managers

  • Aspirants of credit certifications of Moody's Analytics or IIBF

Content

The Starting Point

Straight from the mentor
What is Credit Risk?
Understanding the Factors affecting Credit Risk
What are Credit Ratings and Risk Management?
Relationship of Credit Ratings with other Aspects of Credit
Credit Risk Analysis and Credit Lending - Relationship

Industry and Business Risk

What is Industry and Business Risk - Understanding with Real Examples
Industry Risk Positions and Life Cycle of Industries and Businesses
Factors affecting Industry and Business Risk - Understanding with Real Examples

Management Risk

Factors determining Management Risk with examples - Part 1
Factors determining Management Risk with examples - Part 2

Financial Risk

Ratio Analysis, Loan Assessment, Facility Structure- Different but Connected!
Understanding Liquidity Ratios
Understanding Turnover Ratios
Important Non Ratio Terminologies - TNW, Adjusted TNW and Quasi Equity
Important Non Ratio Terminology - CapEx and Its Calculation
Understanding Solvency Ratios and Liquidity/Solvency Matrix
Understanding Coverage Ratios
Interest Coverage and Cash Flow Coverage
Profitability Ratios - Annual Sales Growth Rate
Profitability Ratios - Adjusted Gross Margin
Profitability Ratios - Operating Expenses Percentage
Projections- What to accept and what to not?

Facility Risk Rating

Understanding Loss Given Default (LGD)
2. Understanding Exposure At Default (EAD)

Deal Structure

What is Deal structure and Internal Monitoring and Why is it Important?
Constituents of a Good Deal Structure, its Structuring and Implementation
Internal Monitoring Plan
Covenants for Sanction

Screenshots

Credit Risk Analysis and Rating (For Bankers) - Screenshot_01Credit Risk Analysis and Rating (For Bankers) - Screenshot_02Credit Risk Analysis and Rating (For Bankers) - Screenshot_03Credit Risk Analysis and Rating (For Bankers) - Screenshot_04

Reviews

Amit
December 10, 2022
This is the Best Best Best Credit Analysis course one could learn from..!! Really appreciate the hardwork sir has put in this course.
Swastik
October 29, 2022
It was a great experience. The topics were covered comprehensively. I have gained valuable insights from the course
George
May 6, 2022
The course has simplified the concepts really well. The presentation quality is good. Overall satisfied
Umesh
April 15, 2022
Crisp and to the Point Course covering major elements of credit Risk Analysis. Credit Risk is such a vast subject and difficult to cover in short courses but the teacher has really put hard work to make it possible. I would recommend this course to all particularly to Bankers. Thank you .

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4634394
udemy ID
4/9/2022
course created date
4/12/2022
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