Credit Risk Analysis
Overview
Sound credit decisions are the foundation of a healthy loan portfolio. This course covers how to analyse borrowers, assess financial statements and cash flows, structure facilities, use credit scoring and manage the credit portfolio and problem loans.
Who should attend
Credit analysts, relationship managers, risk managers, and loan officers.
Training methodology
Interactive presentations, practical exercises, case studies, group discussions, role-plays where relevant, and a personal action plan that participants apply in their own work.
Objectives
By the end of this course, participants will be able to:
- Analyse borrowers' business and financial risk
- Assess repayment capacity from cash flows
- Structure credit facilities and security
- Use credit scoring and ratings
- Monitor portfolios and manage problem loans
Course outline
Day 1Credit Fundamentals
- Credit risk concepts
- The credit process
- Credit policy
- The five Cs
- Discussion
Day 2Borrower Analysis
- Business and industry risk
- Management assessment
- Financial statement analysis
- Ratio analysis
- Case analysis
Day 3Cash Flow and Structure
- Cash flow analysis
- Debt capacity
- Facility types
- Collateral and guarantees
- Structuring exercise
Day 4Scoring and Ratings
- Credit scoring models
- Internal ratings
- Probability of default
- Pricing for risk
- Exercise
Day 5Portfolio and Problem Loans
- Portfolio monitoring
- Early warning signs
- Restructuring
- Recovery
- Action plan
