Credit Risk - Part 1

Credit Risk - Part 1


This eCourse consists of two modules on Credit Risk. Module 1 outlines how credit risk is generated by the business of financial institutions, as well as the structures these institutions should have in place to manage this risk. It describes in detail the entire credit risk lifecycle, from risk assessment through to ongoing risk reporting and monitoring. The module also explains why it is important for banks to look beyond credit risk and take into account other risks such as market and operational risk when making credit decisions.

Module 2 describes these different risk types and the characteristics that determine whether a particular credit risk falls into one risk type or another. It goes beyond the credit risks that arise in the traditional banking book to examine those that arise in the trading book and the regulatory and risk management implications of this distinction. The module also describes in detail how banks segment different customer types and why this differentiation matters from a credit risk point of view.


On completion of this course, you will be able to:
- Identify how credit risk arises and the key factors that influence the size of credit risk exposures
- Distinguish between the different stages of the credit risk lifecycle for all customer relationships or transactions
- Recognize why credit decisions should be taken after assessing and taking into account relevant non-credit risk
- Distinguish between the different types of credit risk, including the difference between direct and contingent credit risks as well as those that arise from settlement, trading, and underwriting activities
- Recognize the different credit risk customer types and the importance of differentiating between these customer types
- Identify how credit risk arises in both the banking book and the trading book and the significance of this distinction


Module 1: Credit Risk - An Introduction
Topic 1: Basics of Credit Risk
Topic 2: Credit Risk Lifecycle
Topic 3: It’s Not Just About Credit Risk

Module 2: Credit Risk - Types
Topic 1: Types of Credit Risk
Topic 2: Customer Types
Topic 3: Banking vs. Trading Book Risk


SFC:2.0, PWMA:2.0
All Member: HK$520
Non-Member: HK$740
Staff of Corporate Member: HK$520