Fundamentals of Credit Risk Analysis

Master the essentials of credit risk evaluation and mitigation

Build the knowledge and practical skills needed to understand credit risk in financial systems. On this two-week course, you’ll explore foundational concepts and develop confidence in using real-world tools to evaluate, manage, and mitigate credit risk.

From assessing borrower creditworthiness to understanding regulatory requirements, this course prepares you to navigate financial risk in today’s complex economy.

Understand the fundamentals of credit risk in finance

Begin your journey by exploring what credit risk is and why it’s vital in financial decision-making. You’ll examine key terms, the credit cycle, and how financial institutions measure and monitor credit risk.

This lays the groundwork for deeper analysis and real-world application.

Evaluate credit scoring systems and risk assessment models

You’ll then explore both qualitative and quantitative models for assessing creditworthiness.

You’ll examine how credit scoring and data analytics influence lending, uncover shifts from traditional to data-driven methods and see how risk is judged across different sectors.

Apply credit risk mitigation strategies and regulations

This course delves into real-world practices for reducing and managing credit risk. You’ll analyse case studies, evaluate the impact of global regulations like the Basel Accords, and explore tools such as credit derivatives, collateral, and diversification.

By the end, you’ll understand how to confidently align strategy with compliance.

This course is ideal for financial analysts, banking professionals, entrepreneurs, and students seeking to strengthen their understanding of credit risk and improve their decision-making in lending and finance.

This course is ideal for financial analysts, banking professionals, entrepreneurs, and students seeking to strengthen their understanding of credit risk and improve their decision-making in lending and finance.

• Explain the concept of credit risk and how it affects pricing in bonds.
• Discuss the four Cs (Capacity, Collateral, Covenants, and Character) of standard credit analysis.
• Evaluate financial statements and perform basic ratio analysis to determine the relative level of risk a borrower presents and how that correlates to the price of their debt issues.
• Compare different types of bonds based on their credit ratings and explain the meaning behind those ratings.