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Credit Risk Management

Course overview

This course focuses on credit portfolio risk management techniques, examining several models and approaches that have developed in the marketplace. It considers how credit derivatives and other risk mitigation methods can be used in the implementation of a credit portfolio risk management program. It also addresses the policy, practice and process issues that need to be part of an integrated risk management program within a financial institution.

Why a Credit Risk Management Course?

This course helps to develop a foundation of financial management concepts. It also enables to understand credit risk management, what the lending objectives are, and how to measure credit risk. It also involves quantitative and qualitative analysis to assess the probability of default and resulting loss, and conducting thorough due diligence of companies' strategies, management, and financial strength. Moreover, Banking professionals have to maintain a balance between risks and returns. The risks have to be assessed in order to achieve a sound investment decision. Banks must be active in managing the risks in various securities and derivatives. Progress has to be made for analyzing the credits and determining the probability of defaults and risks of losses.So credit risk management becomes a very important tool for the survival of banks.

What can a Credit Risk Management Course do for your career?

Credit Risk Analysts play an important role in facilitating the business development initiatives of our Investment Banking and Sales & Trading divisions. Scope of Credit Risk Management is vast as it includes performing detailed credit analysis of trading and loan counter parties, including multinational corporations, financial institutions, funds, or sovereigns; presenting rating recommendations to Credit Committees; conducting research and presenting the risks of a particular industry or sector; interacting with Sales & Trading, Legal, Operations & Compliance departments to ensure appropriate documentation, limits and risk mitigants to protect against a counterpart default and minimize potential losses.

Colleges Offering the Course

  • The Institute of Risk Management (IIRM)
  • Indian Institute of Capital Markets (IICM) – Financial Engineering and Risk Management
  • UTS, Pune
  • SkillBridge, Bangalore

Course Content

Most courses on insurance would have the following subjects:

  1. Introduction to credit risk management
  2. The Credit Process
  3. Credit Selection
  4. Credit Risk
  5. Application of Credit Risk Measurement
  6. Objectives of Credit Portfolio
  7. Credit Risk Loss Distribution
  8. Credit Rating Systems
  9. The Economics of Credit
  10. The Basel Accords

Course Fee

The fees for this course varies depending on the duration of the course. IICM charges Rs 70000 for a 6 month program. IIRM charges Rs 225000 for a 2 year PG Diploma course on Risk Management, but eligible students can avail scholarship.

Application process

IICM admits graduates with relevant experience in the field. PG diploma course also requires graduation. For a certificate course passing 12th is the only requirement.

Is it suitable for me?

If it is your dream to work in a bank in the operations and enjoy working with numbers, this course is for you.

Fintotal Insight

With emphasis on conformance to Basel II after the financial crisis of 2008 credit risk management in banks has acquired an important place. Banks have officers for managing credit risk. A PG Diploma in this course would enhance chances of employment in the position.

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