Credit Analysis and Credit Risk Modelling

About this course

Sound lending rests on careful analysis and a clear view of risk. This five-day course takes you from analysing a borrower's statements and cash flow to judging repayment capacity, management and industry risk.

You will then build simple scoring models and estimate probability of default, loss given default and exposure at default, linking expected loss to provisioning, capital and pricing. Spreadsheet exercises and lending cases help you apply each technique with confidence.

What you'll learn

• Analyse a borrower's financial statements, cash flow and repayment capacity
• Assess qualitative factors such as management, industry and governance
• Build and interpret credit scoring and rating models
• Estimate probability of default, loss given default and exposure at default
• Calculate expected loss and explain its link to provisioning and capital
• Structure credit facilities with appropriate covenants and security
• Monitor credit portfolios and recognise early warning signs

Curriculum

Who it's for

Credit analysts, relationship managers, credit risk officers and auditors in banks and lending institutions.

Before you start

• Good knowledge of financial statements
• Comfort working with spreadsheets

Part of these Alalamia diplomas

• Alalamia Diploma in Financial Analysis and Decision Making
• Alalamia Diploma in Banking and Financial Services