Financial Products & Associated Risk Management
Credit Risk Management - Part 2
This eCourse consists of two modules. Module 1 describes the various stakeholders that banks must manage, the importance of managing their often conflicting expectations, and some of the strategies and techniques for stakeholder management in the context of credit risk. There is a particular focus on regulatory stakeholders, who are among the most important stakeholders from a bank’s point of view – and an even more influential player since the financial crisis.
Module 2 looks in detail at the requirements for banks to manage credit risk at the strategic level and some of the challenges they face in that regard, including internal and external constraints on business objectives, the issues involved in setting group credit risk appetite, establishing an appropriate and robust strategic credit risk management framework, and creating and sustaining a strong credit culture. The module also describes the importance of managing credit risk at the business unit level and the role of business heads, in conjunction with credit, in implementing business unit strategy in line with the bank’s business objectives and target market.
On completion of this course, you will be able to:
- Describe the different types of stakeholder that banks must manage and the importance of managing these stakeholders
- Explain the crucial role played by the various regulatory stakeholders
- Describe how banks manage credit risk at the strategic level and the challenges associated with this
- Explain the need to manage credit risk at the business unit level as well as the strategic level and the role of business heads in that regard
Module 1: Credit Risk Management - Stakeholders
Topic 1: Many Stakeholders to Manage
Topic 2: Regulatory Stakeholders
Module 2: Credit Risk Management - Strategic & Business Unit Management
Topic 1: Strategic Credit Risk Management
Topic 2: Business Unit Credit Risk Management