Advanced Credit Risk Management

Learning Outcomes

• Understand approaches to credit risk management.
• Be able to assess credit risk.
• Be able to recommend improvements to credit risk management.

Assessment Criteria

• Explain principle forms and methods of credit risk assessment and control.
• Assess the impact of credit risk management approaches on stakeholders.
• Quantify credit risk using data from a variety of information sources.
• Assess credit risk on the basis of a range of financial information.
• Assess credit risk on the basis of non financial information.
• Report on the level of credit risk within the department.
• Communicate a plan of action to improve the management of credit risk.

Indicative Content

• Theoretical understanding of credit risk management forms, models and methodologies of assessment
• Credit risk control aids
• Credit risks and their driving factors, including probability of default, loss given default and exposure at default
• Continuity and resilience planning
• Quantification of credit risk using financial and non financial information
• External data sources
• Use of internal documents such as a credit policy in the control of risk
• Risk logs, registers and policies