CCP Paper No. 12 Advanced Credit Risk Management

UNIT DESCRIPTION

This paper Advanced Credit Risk Management is intended to equip the candidate with knowledge, skills and attitudes that will enable him/her to evaluate and manage credit portfolio risk using the proven tools and methods and advise management regarding optimal credit portfolio and credit risk diversification.

LEARNING OUTCOMES

A candidate who passes this paper should be able to:

• Apply the principles of credit portfolio risk management in identification, measurement and management of major credit portfolio risks
• Relate firm risks to portfolio risks and capital
• Mitigate credit exposure using various securities in covering credit obligations
• Advise the management regarding the optimal lending, product-wise, for a profitable credit portfolio (Credit portfolio risk vs. Return).
• Employ risk diversification, trading of credit assets and credit derivatives in mitigating credit portfolio risk.
• Establish and implement the organization’s overall credit risk management