Overview/Description Target Audience Expected Duration Lesson Objectives Course Number Overview/Description
When dealing with other parties, banks and other financial institutions face a variety of risks. The most relevant of these is credit risk. The global expansion of sophisticated products, such as derivatives and a host of other products, has further fueled the rise in transaction values. This poses a real threat to a company's well-being, regardless of its size. Emerging from the credit crisis of 2007, which saw a number of financial institutions, both large and small, fail due to unmanageable credit losses, it has become paramount for organizations to track and manage credit risk. In addition, new global banking rules are in place to guide various financial institutions towards best practices for credit risk management. Under current international banking regulations, credit ratings of counterparties have become ever more important in determining how much capital reserves financial institutions should set aside to protect themselves from potential counterparty defaults. This course focuses on external credit rating agencies and the process by which credit ratings are determined. It discusses how credit ratings are used to calculate credit risk, which in turn allows the banks and financial institution to determine how much capital they need to cover their risk. The course also discusses the use of an internal credit rating process to determine capital reserves.
Financial services professionals, consultants, sales professionals interested in providing or selling products and services to banks, investment companies, and other financial corporations, and everyone interested in understanding counterparty credit risks and techniques for their mitigation