Credit Risk Modeling & its Application in Banks

Through these tutorial we are going to learn how to assess the probability and potential impact of credit risk on a business.

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 58m | 8 Videos | 58025 Views |   Intermediate

Credit Risk Modeling & its Application in Banks:

There are various types of risks that a bank faces and to it important to deal with them correctly and in time. They require to be predicted and then controlled in a way that it does not affect their business.

Through these tutorial we are going to learn how to assess the probability and potential impact of credit risk on a business.

The training will include the following;

1. Defining credit risk

2. Why measure credit risk ?

3. Credit Risk factors: PD, EAD, LGD

4. Expected Loss (EL) v/s Unexpected loss (UL)

5. Computing EL and UL for a single asset

6. Computing losses for a portfolio

7. Application of risk models in banks – Economic Capital

8. Back testing and validation of models

9. Challenges to quantifying credit risk

Target Customers:

• Bankers
• Accountants
• People wanting to make a career in commercial Banks
• Anyone who wants to learn about how risk management takes place in banks

Pre-Requisites:

• Basic terminologies associated with banks
• Knowledge of basic financial concepts

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