Credit Risk: Key Concepts

Overview of credit risk: This section aims to enable participants to understand the importance of credit risk to a bank or financial institution, understand the different forms that credit risk can take and recognise early warning signs of high credit risk, exploring key banking activities and the importance of credit risk. Credit Analysis: To enable participants to carry out a structure approach to credit analysis and recognise some of the issues which arise from exposures to differing customers and counterparties. Credit Risk Mitigation: Recognise the role of different financial and other techniques in reducing credit risk. Capital Allocation: Understand the different definitions of capital from the perspective of differing stakeholder and how capital is allocated specifically to credit risk.