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An Introduction to Credit Risk Management

Imagine that you are a bank and a main part of your daily business is to lend money. Unfortunately, lending money is a risky business - there is no 100% guarantee that you will get all your money back. If the borrower defaults, you will face losses in your portfolio. Or, in a bit less extreme scenario, if the credit quality of your counterparty deteriorates according to some rating system, the loan will become more risky. These are typical situations in which credit risk manifests itself.

According to the Basel Accords, a global regulation framework for financial institutions, credit risk is one of the three fundamental risks a bank or any other regulated financial institution has to face when operating in the markets (the two other risks being market risk and operational risk). As the 2008 financial crisis has shown us, a correct understanding of credit risk and the ability to manage it are fundamental in today’s world.

This course offers you an introduction to credit risk modelling and hedging. We will approach credit risk from the point of view of banks, but most of the tools and models we will overview can be beneficial at the corporate level as well.

At the end of the course, you will be able to understand and correctly use the basic tools of credit risk management, both from a theoretical and, most of all, a practical point of view. For each methodology, we will analyse its strengths as well as its weaknesses. We will do this in a rigorous way, but also with fun: there is no need to be boring.

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Delft University of Technology (TU Delft)

Rating 4.3 based on 6 ratings
Length 7 weeks
Effort 6 - 7 hours per week
Starts Sep 3 (43 weeks ago)
Cost $50
From Delft University of Technology (TU Delft), DelftX via edX
Instructor Pasquale Cirillo
Download Videos On all desktop and mobile devices
Language English
Subjects Business Data Science
Tags Business & Management Data Analysis & Statistics Economics & Finance

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What people are saying

According to other learners, here's what you need to know

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My advice is to skip mathematical and programming parts if you don't want to get into that and you will still find this course very useful in understanding at least partially the framework of credit risk management.

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And above all, thanks to the honesty of Dr. Cirillo you'll find very interesting resources about the flaws in the system during the recent crisis e.g.

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Also you will run Introduction to R. However you should be patience while taking the class.

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Careers

An overview of related careers and their average salaries in the US. Bars indicate income percentile.

Credit and Risk Analyst $63k

Credit Risk Specialist 2 $63k

Credit Risk Coordinator $65k

Credit/Risk Specialist $67k

Credit Risk Metrics Specialist $72k

Credit risk leader $76k

Credit Risk Strategist $82k

Credit Policy & Risk Analyst $82k

Credit Risk Officer 1 $97k

Credit/Risk Analyst $104k

Credit Officer, Credit Risk Management $128k

International Risk & Credit Controller $156k

Reviews

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Guest says:

Excellent. This gave me much better perspective about financial and credit risk, particularly when it comes to thinking about counterparty risk as relates to my role in bank.

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Delft University of Technology (TU Delft)

Rating 4.3 based on 6 ratings
Length 7 weeks
Effort 6 - 7 hours per week
Starts Sep 3 (43 weeks ago)
Cost $50
From Delft University of Technology (TU Delft), DelftX via edX
Instructor Pasquale Cirillo
Download Videos On all desktop and mobile devices
Language English
Subjects Business Data Science
Tags Business & Management Data Analysis & Statistics Economics & Finance

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