Course Overview
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