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Module 1: The Role of Credit Risk Management

1.1.              What Credit Risk Management is

1.2.              Terminology and what credit loss is

1.3.              The Credit Wave

1.4.              The concept of Credit Cycle

1.5.              Impact of Credit Losses on P&L account

1.6.              Understand risk-reward trade-off

1.7.              Tools to manage credit risk

 

Module 2: Introduction to Credit Scoring

2.1.              Difference between manual underwriting and scoring

2.2.              Principles of Scoring

2.3.              Definitions and Point Scores

2.4.              Model building (high level)

2.5.              Definition of Bad

2.6.              Scoring Charts

 

Module 3: Cut-offs and Strategies

3.1.              Overview of Cut-off strategies

3.2.              Use of Scoring Charts:

3.2.1.  Cut-off based on Trade-off chart

3.2.2.  Cut-off based on Strategy Quote graph

3.2.3.  Cut-off based on Break-even Odds

3.3.              Scorecards with Underwriters

3.4.              Lending Strategies based on Score

 

Module 4: Marketing, Underwriting and Fraud

5.1.              The conflict between Marketing and Credit Risk

5.2.              Adverse Selection

5.3.              Marketing Effect and Risk

5.4.              The 3Cs of Underwriitng

5.5.              Where Underwriters add value

5.6.              "Working the deal"

5.7.              Fraud (briefly)


Module 5: Portfolio Management Collections

5.1.              Overview of Behavioural Scoring:

5.1.1.  Application vs Behavioural Scoring

5.1.2.  Uses of Behavioural Scoring

5.1.3.  Dynamics of Behavioural Scoring

5.2.              Champion/Challenger Strategies

5.3.              Collections principles

5.4.              Collections tools and structures

5.5.             Roll Rates

 

  Module 6: Credit Quality Metrics

6.1.              Credit Quality Metrics

6.1.1.  Write off and Delinquncy measures

6.1.2.  Value at Risk and Expected Loss (BASEL)

6.1.3.  Cleverness Index and Balance Index

6.2.              Vintage Analysis

6.3.              The Portfolio Effects

 

Module 7: What is Analysis?

7.1.              Analysis examples

7.2.              What is data analysis

7.3.              An analysis proess flow

 

Module 8: Credit Analysis Tools

8.1.              The importance of drill down

8.2.              Analysis of components

8.3.              Risk Ratio

8.4.              Chi Squared and Information Value

8.5.              Gini and KS

 

Module 9: Forecasting

9.1.              Why forecast

9.2.              Models:

9.2.1.  Time series

9.2.2.  Roll rates

9.2.3.  Vintage

9.3.              Stress testing

9.4.              Ultimate losses (Markov models)

 

Module 10: Closing the Cycle

10.1.         Review of key concepts

10.2.         Stratagem: what we have learnt

 

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