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Credit Risk for Financial Firms

Credit risk is a form of financial risk. For most financial firms, loans - including mortgages, credit cards, personal loans and corporate loans - are the primary source of credit risk. 

Some credit risk takes the form of counterparty credit risk. This is the risk that arises from the possibility that the counterparty defaulting on amounts owed 

In our Credit Risk for Financial Firms course, you'll learn about default risk, credit risk, its key components and how to manage it.

Get started Course details
  • 40 Minutes
  • All staff
  • Based on best-practice risk management frameworks and suitable for global audiences.

Learning objectives

  • Understand what credit risk is, including its sub-types
  • Quantify and calculate credit risk
  • Recognise who manages credit risk within a company
  • Learn how to manage credit risk by identifying, assessing, treating, monitoring and reporting it
  • Recognise the importance of continual improvement for credit risk management

    What can you expect your employees to learn?

Welcome

  • Learning objectives
  • How to complete this course

What is credit risk?

  • Types of credit risk
  • You decide: True or false?
  • What is default risk?
  • Calculate the default risk
  • The relationship between interest rates & credit risk
  • Credit derivatives
  • You decide: True or false?

Who manages credit risk in a company?

  • You decide: Who manages credit risk?


What kinds of rules do financial services regulators write about credit risk?

  • In the news: Credit risk

The Management of Risk (MoR) framework
Identifying credit risk

  • Scenario: The business loan

Assessing Credit Risk

Short-term solvency ratios

  • Scenario: Background checks using short-term solvency ratios

Capitalisation ratios

  • Scenario: Background checks using capitalisation ratios

Coverage ratios

  • Scenario: Background checks using coverage ratios

Assessing the ability to service debt

  • Scenario: Assessing the ability to service debt

Determining credit risk appetite

  • You decide: Engaging with credit risk appetite

Treating credit risk

  • Credit risk controls
  • You decide: Credit risk controls

Credit risk monitoring

  • Scenario: Credit risk monitoring

Credit risk reporting

  • Deeper dive: Credit risk reports
  • You decide: Credit risk reporting

Continual improvement of credit risk

  • Scenario 1: Rising inflation
  • Scenario 2: The bankruptcy

Your responsibility

Summary
Affirmation
Assessment


Does your company have…

Under 50 employees?

We recommend our CoreCompliance, our solution, perfect for smaller teams. Start your training immediately with pre-configured, ready-to-go courses.

Learn more

Over 50 employees?

We have a range of flexible pricing plans to suit your unique needs. Choose from off-the-shelf course libraries or a customised, bespoke approach to reach your compliance learning goals.

Explore plans

Your questions, answered

Common FAQs

Are the courses SCORM-compliant?

Yes. This means they can be delivered via the Skillcast Portal or any other SCORM-compliant Learning Management System.

What other tools are needed beyond training?

A comprehensive compliance solution often needs more than just training. Alongside e-learning, tools like declarations, surveys, and registers that track compliance tasks are usually essential. Skillcast provides full support to help you set up these additional tools.

Can users only view the courses assigned to them?

No. All users can view all the courses in your Portal. Additionally, some of these courses may be mandatory, requiring completion by the given deadline.