Credit Risk Management Fundamentals

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Credit Risk Management Fundamentals

This course is part of Credit, Market & Liquidity Risk Specialization

Instructor: EDUCBA

Included with

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10 modules

Gain insight into a topic and learn the fundamentals.

2 weeks to complete

at 10 hours a week

Flexible schedule

Learn at your own pace

10 modules

Gain insight into a topic and learn the fundamentals.

2 weeks to complete

at 10 hours a week

Flexible schedule

Learn at your own pace

What you'll learn

Analyze credit risk, counterparty exposure, and default risk using quantitative risk models.
Evaluate securitization, credit derivatives, CVA, and structured products in banking.
Apply portfolio credit risk, stress testing, and economic capital frameworks to risk decisions.

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Build your subject-matter expertise

This course is part of the Credit, Market & Liquidity Risk Specialization

When you enroll in this course, you'll also be enrolled in this Specialization.

Learn new concepts from industry experts
Gain a foundational understanding of a subject or tool
Develop job-relevant skills with hands-on projects
Earn a shareable career certificate

There are 10 modules in this course

Master advanced credit risk concepts, counterparty exposure, securitization, and credit derivatives for FRM Part II success.

Build practical expertise in modern banking risk management using real-world frameworks and quantitative techniques. This course provides a complete deep dive into Credit Risk Measurement and Management for FRM Part II learners and finance professionals. Learners will explore expected and unexpected loss models, economic capital, counterparty credit risk, collateral management, securitization, structured products, CVA, and portfolio credit risk analytics. The course combines conceptual clarity with practical applications used in modern banking and financial institutions. Learners will understand rating systems, default prediction models, CCP risk management, stress testing frameworks, and exposure measurement techniques essential for risk management careers. Designed for FRM candidates, credit analysts, treasury professionals, and banking practitioners, this course helps learners strengthen both exam preparation and industry-relevant risk management skills.

Build foundational expertise in credit analysis, expected loss measurement, banking risk functions, and core credit risk management principles used in financial institutions.

What's included

11 videos1 assignment

11 videosTotal 50 minutes

Introduction to FRM Level II4 minutes
Overview of Credit Analysis11 minutes
Quant Measurement5 minutes
EL Calcuation8 minutes
Bank Insolvency2 minutes
Introduction to Credit Analyst1 minute
Universe of Credit Risk5 minutes
Credit Analyst Role4 minutes
Bank Credit Risk Tasks4 minutes
Bank Credit Risk Skills3 minutes
Sources of Information3 minutes

1 assignmentTotal 30 minutes

Graded - Foundations of Credit Risk Intelligence30 minutes

Understand economic capital models, capital structure analysis, unexpected loss measurement, and counterparty exposure frameworks used in modern banking risk management.

What's included

11 videos1 assignment

11 videosTotal 51 minutes

Audit Report2 minutes
Camel Framework for Bank Credit Risk3 minutes
Concept of Economic Capital6 minutes
Important Factors for Economic Capital Calcualtion5 minutes
Introduction to Capital Structure in Banks1 minute
Quantifying UL and EL7 minutes
Risk Contribution8 minutes
Translation of UL in EC6 minutes
Introduction to Counterparty Risk1 minute
Concept of Counterparty Risk6 minutes
Transactions involving Counterparty Risk6 minutes

1 assignmentTotal 30 minutes

Graded - Economic Capital and Risk Frameworks30 minutes

Analyze counterparty exposure, probability of default, portfolio loss modeling, and quantitative credit exposure measurement techniques.

What's included

11 videos1 assignment

11 videosTotal 86 minutes

Security Financing Transaction4 minutes
Counterparty Risk Terminology6 minutes
Managing Counterparty Risk6 minutes
Topic Objective7 minutes
Probability of Default10 minutes
Exposure Amount6 minutes
Expected Loss12 minutes
UnExpected Loss9 minutes
Portfolio EL and UL9 minutes
Economic Capital for Credit Risk10 minutes
Introduction to Rating Assignment7 minutes

1 assignmentTotal 30 minutes

Graded - Counterparty Risk and Credit Exposure Analytics30 minutes

Explore borrower rating systems, migration models, structural credit frameworks, and quantitative default prediction techniques for advanced credit analysis.

What's included

11 videos1 assignment

11 videosTotal 109 minutes

Rating System10 minutes
Different Approaches5 minutes
Rating Migration Matrix7 minutes
Rating Agencies Methodologies9 minutes
Borrower Rationg12 minutes
Structural and Reduced form Approaches13 minutes
Linear Discriminant Analysis10 minutes
Logit Regression Model15 minutes
Cash Flow Simulation Model14 minutes
Counterparty Risk-Topic Objective7 minutes
Transaction with Counterparty Risk6 minutes

1 assignmentTotal 30 minutes

Graded - Credit Ratings and Default Modeling30 minutes

Learn netting frameworks, close-out procedures, wrong-way risk, and advanced collateral mechanisms used to manage counterparty credit exposure.

What's included

11 videos1 assignment

11 videosTotal 96 minutes

Repos and Resrve Repos7 minutes
Securities Borrowing and Lending11 minutes
Institution that Take on Counterparty Risk10 minutes
Managing8 minutes
Mitingating8 minutes
Netting and Close-Out Procedure7 minutes
Netting and Close-Out Procedure Continue8 minutes
Netting and Close-Out Multiple Procedure9 minutes
Termination Features12 minutes
Wrong-Way Risk8 minutes
Wrong-Way Risk Continue9 minutes

1 assignmentTotal 30 minutes

Graded - Netting, Collateral, and Risk Mitigation30 minutes

Understand securitization, credit risk transfer models, credit derivatives, and structured finance products used in modern financial markets.

What's included

11 videos1 assignment

11 videosTotal 113 minutes

Collateral Agreement Risk12 minutes
Collateral Agreement Risk Continue10 minutes
More on Collateral Agreement Risk11 minutes
Securitization and Credit Risk Mitigation12 minutes
Flaws in Securitization and Credit Risk Mitigation10 minutes
Credit Risk Mitigation Techniques12 minutes
Originate to Distribute Model of Credit Risk7 minutes
Credit Derivatives Part 19 minutes
Credit Derivatives Part 29 minutes
Credit Derivatives Part 311 minutes
Credit Derivatives Part 410 minutes

1 assignmentTotal 30 minutes

graded - Collateral Risk and Credit Derivatives30 minutes

Develop expertise in collateral systems, CSA agreements, CCP structures, SPVs, and central counterparty risk management processes.

What's included

11 videos1 assignment

11 videosTotal 108 minutes

Collateral Management10 minutes
Parameters11 minutes
Types of Collateral8 minutes
Collateral Features10 minutes
CSA Agreement7 minutes
Collateral Agreement Risk12 minutes
Introduction to Counterparty Risk Intermediation8 minutes
Special Purpose Vehicle9 minutes
Central Counterparty8 minutes
CCP Risk Management Process13 minutes
CCp Advantages and Disadvantages12 minutes

1 assignmentTotal 30 minutes

Graded - Collateral Management and CCP Ecosystems30 minutes

Examine retail banking risk, stress testing frameworks, CVA methodologies, and counterparty credit exposure adjustments.

What's included

11 videos1 assignment

11 videosTotal 96 minutes

Retail Banking Risk6 minutes
Reputation Risk8 minutes
Credit Risk Scoring Models5 minutes
Creditworthiness7 minutes
Tradeoff Between Creditworthiness and Profitability8 minutes
The Evolution of Stress12 minutes
Counterparty Credit Risk7 minutes
Stress Testing7 minutes
Stress Testing Continue9 minutes
Credit Value Adjustment13 minutes
Credit Value Adjustment Continue14 minutes

1 assignmentTotal 30 minutes

Graded - Retail Banking, Stress Testing, and Credit Adjustments30 minutes

Analyze Credit VaR, copula-based portfolio models, securitization frameworks, cash waterfalls, and credit enhancement structures.

What's included

11 videos1 assignment

11 videosTotal 115 minutes

Credit Portfolio and Credit Var12 minutes
Credit Var with Copulas9 minutes
Credit Var with Copulas Continue8 minutes
Introduction to Securitization8 minutes
Securitization Process13 minutes
Cash Waterfall Process13 minutes
Master Trust Structure13 minutes
Securitization Benefits12 minutes
Credit Enhancement8 minutes
Performance Measure for Securitization Structures8 minutes
Securitization Structure Ratios11 minutes

1 assignmentTotal 30 minutes

Graded - Credit Portfolio Models and Securitization Structures30 minutes

Master structural credit models, credit spreads, exposure metrics, structured products, PFE analysis, and practical credit risk applications.

What's included

13 videos1 assignment

13 videosTotal 114 minutes

Frictions in Subprime Mortage Securitization12 minutes
Frictions in Subprime Mortage Securitization Continue13 minutes
Merton Model7 minutes
Credit Spreads9 minutes
Important Tables9 minutes
Credit Derivatives6 minutes
Spread Convention10 minutes
Structured Products7 minutes
Impact of Probability9 minutes
Credit Exposure Metrics7 minutes
PFE Impact on Different Products9 minutes
Excel Session6 minutes
Excel Session Continue11 minutes

1 assignmentTotal 30 minutes

Graded - Advanced Credit Products and Practical Applications30 minutes

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Instructor

EDUCBA

1,533 Courses318,998 learners

Offered by

EDUCBA

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