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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.

Start your trial 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


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Your questions, answered

Common FAQs

Are Skillcast 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.

Is our training content still compliant with the latest legislation?

  • You can check the latest course content updates in our library updates page: https://www.skillcast.com/compliance-course-library-updates
  • For major legislative changes, we:
    • Will send you email alerts to ensure you are notified
    • Offer you a free trial of newly created or updated content
    • Host webinars with compliance experts to explain the changes and how our training supports your ongoing compliance

Can you translate our content into other languages?

Yes, we offer translations in a wide range of languages. Let us know your needs, and we’ll confirm availability or work with you to plan translations for your selected modules.

What file types are supported by the Skillcast system?

Features

Supported file types and details

File Exchange

File types: PDF, Excel spreadsheets, Word documents, SCORM and xAPI files, and compressed zip files. Max file size: Default is 1GB, can be increased to a max of 2GB

SCORM files

Versions: SCORM 1.2, SCORM 1.2 for Moodle, SCORM 2004 2nd, 3rd and 4th Edition. Max file size: 1024MB

xAPI file

Max file size: 2GB

Videos

File types: MP4 or MOV. Videos must be optimised, with a max file size of 100MB. If the file is bigger, our Design Team can help

Images

File types: jpg, png and gif. The file size should ideally be 100KB, but it can be up to 250KB

CPD evidence

File types: Word, PDF, Excel and CSV. File size: the limit should be whatever the portal config option is set to. Servers are set to max 2GB

Policy documents

PDF or Word File size: the limit should be whatever the portal config option is set to. Servers are set to max 2GB

Offline activities evidence

File types: PDF, DOC, DOCX, XLS, XLSX, CSV, PNG, GIF, JPEG, JPG, PPTX and MSG. File size: the limit should be whatever the portal config option is set to. Servers are set to max 2GB

Client logo files

File types provided by client: EPS, PDF, AI and SVG

Registers

PDF, DOC, DOCX, XLS, XLSX, CSV, PPT, PPTX, POT, PPA, PPS, JPG, JPEG, PJEPG, PNG, BMP, GIF, MP4, MOV, WMV, CPTX, CP, TXT, ZIP and MSG files

Declarations

JPG, JPEG, PNG, GIF, XLS and XLSX files