Credit risk management continues to constitute one of the greatest challenges to financial institutions and regulators worldwide. As witnessed by the Enron debacle, the recent sub-prime crisis and a number of other credit surprises, upgrading knowledge in new credit techniques is a serious issue in the international banking community. Lending fiascos locally, caused by a drive for earnings at the expense of asset quality have led to asset quality problems, accounting distortions and disappointing capital impairment for financial institutions.
The objective of this course is to provide participants with a good understanding of credit risk and the contemporary methods available for measuring and managing it effectively. At the end of the training, participants will be able to identify the different types of credit risk and how they arise in different activities; understand how credit risk can be quantified, mitigated, monitored and controlled and the role of credit portfolio management tools, such as collateral, and credit derivatives; appreciate how capital is allocated against risk under Basel II capital adequacy as well as internal economic capital models
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