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Credit Risk Management for Financial Instruments

BPP Professional Education

Summary

Price
£738 inc VAT
Study method
Classroom
Duration
1 day · Full-time
Qualification
No formal qualification
CPD
6 CPD hours / points
CPD What's this?
Additional info
  • Tutor is available to students

Location & dates

Location

Address
Venue may change up to 14-days before the course start date’
9-10 Portland Place
West London
London
W1B1PR
United Kingdom
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Overview

This one-day course aims to ensure recognition of where credit risk is generated in financial instruments; analyse the levels of credit risk generated given the counterparties to which an institution is exposed; and analyse sensitivity of portfolios to changes in market conditions. This area of the business remains critical and is dynamic with the developments of Basel III.

Venue may change up to 14-days before the course start date. Enquire for dates.

CPD

6 CPD hours / points
Accredited by BPP Professional Education Limited

Description

Learning outcomes include obtaining a greater understanding of:

  • The Concept of Credit Risk
    • Definitions of default, failure to pay and other events
    • Credit risk as default probability,
    • Recovery rates and exposures when analysing credit risk
    • Setting credit limits
    • Loss Given Default (LGD), Expected Loss (EL), Exposure at Default (EAD), and Default Correlations
  • Understanding ratings and the process
  • Case study: Ratings adjustments & outlooks
  • Credit Exposure and Portfolios of Trades
  • Portfolio credit risk
  • Effect of netting on credit risk
  • Effect of collateral on credit risk
  • Case study: Understanding CDS contracts
  • Techniques Used to Analyse Credit Risk
  • VaR techniques to analyse credit risk
  • Basic VaR Parametric and Non-Parametric techniques
  • Case study: VaR comparisons
  • Credit Valuation Adjustment (CVA)
    • Defining and calculating
    • Basel III approaches to CVA
    • DVA (more controversial than CVA)

Who is this course for?

This course will be of benefit to dealers, credit officers, auditors, consultants and support staff with a good basic knowledge of the financial markets to develop their understanding of credit risk management.

Questions and answers

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Legal information

This course is advertised on reed.co.uk by the Course Provider, whose terms and conditions apply. Purchases are made directly from the Course Provider, and as such, content and materials are supplied by the Course Provider directly. Reed is acting as agent and not reseller in relation to this course. Reed's only responsibility is to facilitate your payment for the course. It is your responsibility to review and agree to the Course Provider's terms and conditions and satisfy yourself as to the suitability of the course you intend to purchase. Reed will not have any responsibility for the content of the course and/or associated materials.

FAQs

Study method describes the format in which the course will be delivered. At Reed Courses, courses are delivered in a number of ways, including online courses, where the course content can be accessed online remotely, and classroom courses, where courses are delivered in person at a classroom venue.

CPD stands for Continuing Professional Development. If you work in certain professions or for certain companies, your employer may require you to complete a number of CPD hours or points, per year. You can find a range of CPD courses on Reed Courses, many of which can be completed online.

A regulated qualification is delivered by a learning institution which is regulated by a government body. In England, the government body which regulates courses is Ofqual. Ofqual regulated qualifications sit on the Regulated Qualifications Framework (RQF), which can help students understand how different qualifications in different fields compare to each other. The framework also helps students to understand what qualifications they need to progress towards a higher learning goal, such as a university degree or equivalent higher education award.

An endorsed course is a skills based course which has been checked over and approved by an independent awarding body. Endorsed courses are not regulated so do not result in a qualification - however, the student can usually purchase a certificate showing the awarding body's logo if they wish. Certain awarding bodies - such as Quality Licence Scheme and TQUK - have developed endorsement schemes as a way to help students select the best skills based courses for them.
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