Risk Management and Credit Principles from edX

This course is Part 1 of the Credit and Credit Risk Analysis Professional Certificate program from the New York Institute of Finance. The course begins with an introduction to risk management and credit principles. You will review and understand credit risk, credit exposure, and the goals of credit analysis. You will learn about the purpose of debt, debt forms, and the difference between financing from debt vs. equity.

In this course, you will gain a deeper understanding of the principles of credit risks, including exposure, default, default probability, expected loss, and loss given default. Important concepts will be covered that will help you to effectively assess business and industry risks, company business models, market competition, and the impact of risks on company performance. You'll examine how companies measure and mitigate these risks.

Lastly, you'll review the roles of credit-rating agencies and the usefulness of market-related metrics, such as share prices and credit spreads. At the end of the course, you'll complete a hands-on risk analysis assessment.

Free Preview! Access Module 1 for free. For full course access, upgrade to a verified certificate.

What's inside

Learning objectives

Introduction to risk management and credit principles
Principles of corporate and project finance
Credit markets, loan defaults, and expected loss

Business, industry, and company risk
Ratings agencies and financial disclosure

Introduction to risk management and credit principles
Principles of corporate and project finance
Credit markets, loan defaults, and expected loss
Business, industry, and company risk
Ratings agencies and financial disclosure

Syllabus

Mod 01: Introduction to Risk Management and Credit Principles (Audit this module for Free)

Mod 02: Principles of Corporate and Project Finance

Mod 03: Credit Markets, Loan Defaults, and Expected Loss

Mod 04: Business, Industry, and Company Risk

Good to know

Know what's good

, what to watch for

, and possible dealbreakers

Credit Risk and Credit Analysis Certificate, which many students pursue for career advancement

Provides preparation for students looking to work as a credit risk and credit analyst

Beginner-friendly course that starts off by introducing risk management and credit principles

Instructors Tracy Williams are seasoned experts in finance

Emphasis on practical application of assessing company and industry risks

Covers essential concepts like credit risk, credit exposure, and expected loss

Activities

Be better prepared before your course. Deepen your understanding during and after it. Supplement your coursework and achieve mastery of the topics covered in Risk Management and Credit Principles with these activities:

Corporate Finance

Show steps

Review and understand the principles of corporate finance, including capital budgeting, cost of capital, and dividend policy.

View Corporate Finance, Global Edition on Amazon

Show steps

Read and understand key chapters
Summarize and apply concepts to real-world examples
Use the book as a reference during the course

Industry Speaker Series

Show steps

Attend industry speaker series to hear from experts, gain insights, and network with professionals.

Show steps

Identify relevant industry speaker series
Attend the events and take notes
Engage with speakers and ask questions

Summaries and Keywords

Show steps

Creating summaries and keywords of key concepts covered in each module will aid understanding and retention.

Show steps

Read and understand the assigned material
Identify the main ideas and supporting points
Write a concise summary that captures the essence of the material
Extract keywords that represent the main concepts

Five other activities

Expand to see all activities and additional details

Show all eight activities

Quizzes and Practice Questions

Show steps

Complete quizzes and practice questions to test understanding and reinforce key concepts.

Show steps

Take quizzes and practice questions regularly
Review incorrect answers and learn from mistakes
Use practice questions to identify areas for improvement

Analyze companies

Show steps

Review how to analyze companies by looking at their financials, operations, and market position before taking the course.

Browse courses on Business Analysis

Show steps

Identify key financial ratios and metrics
Apply ratios and metrics to analyze a company's financial health
Review a company's income statement, balance sheet, and cash flow statement
Analyze a company's operations and market position

Peer Discussion Groups

Show steps

Engage with peers in discussion groups to exchange perspectives, ask questions, and reinforce learning.

Show steps

Join or create a peer discussion group
Actively participate in discussions
Share insights and ask questions
Provide feedback and support to other group members

Case Study Analysis

Show steps

Reinforce knowledge by analyzing real-world case studies, developing insights, and formulating recommendations.

Show steps

Read and understand the case study
Identify key issues and challenges
Analyze the situation using relevant concepts and theories
Develop recommendations for addressing the issues

Credit Analysis Project

Show steps

Enhance understanding by applying knowledge to a practical project, analyzing a company's creditworthiness and making recommendations.

Show steps

Select a company to analyze
Gather financial data and other relevant information
Analyze the company's financial performance
Assess the company's creditworthiness
Develop and present recommendations

Career center

Learners who complete Risk Management and Credit Principles will develop knowledge and skills that may be useful to these careers:

Risk Manager

Risk Managers work to mitigate and manage a variety of risks within a company. The course you are looking into presents many risk management fundamentals and will be very useful as you navigate a path toward becoming a Risk Manager.

See salaries and explore the career path for Risk Manager

Credit Analyst

A Credit Analyst reviews and evaluates the creditworthiness of individuals and businesses. To be successful, you must have a strong understanding of financial analysis, risk management, and lending practices. The Risk Management and Credit Principles course lays the groundwork to build your knowledge in this area and would be a great resource for your professional development.

See salaries and explore the career path for Credit Analyst

Loan Underwriter

Loan Underwriters review loan applications, evaluate the borrower's financial history, and make decisions about whether or not to grant the loan. By studying this course, you will be well-positioned for success as a loan underwriter, as Mod 03: Credit Markets, Loan Defaults, and Expected Loss, in particular, will help a learner build a strong understanding of loan terms, defaults, and loss.

See salaries and explore the career path for Loan Underwriter

Quantitative Analyst

Quantitative Analysts use mathematical and statistical models to analyze financial data. This course will help you develop a strong foundation in the principles of risk management, which is important for success in this role.

See salaries and explore the career path for Quantitative Analyst

Investment Banker

Investment Bankers help companies raise capital and advise on mergers and acquisitions. This course will help you learn the basics of corporate finance and capital raising and will be particularly helpful if you wish to enter the investment banking field.

See salaries and explore the career path for Investment Banker

Portfolio Manager

Portfolio Managers oversee investment portfolios for individuals and institutions. The course will be especially helpful for those who want to learn about financial analysis. Knowledge of financial markets is important in this role.

See salaries and explore the career path for Portfolio Manager

Insurance Underwriter

Insurance Underwriters evaluate risk and determine the premiums for insurance policies. It may be especially helpful to thoroughly study Mod 03: Credit Markets, Loan Defaults, and Expected Loss while completing this course as it covers concepts of evaluating loss and default probability.

See salaries and explore the career path for Insurance Underwriter

Commercial Loan Officer

A Commercial Loan Officer assesses, analyzes, and approves loans for businesses and large organizations. Some of the work consists of reviewing financial documents and meeting with business owners to discuss loan terms. To be successful in this role, you will need to understand important concepts in finance, accounting, and economics. Ultimately, the course's coverage of risk management, credit principles, and financial analysis will help you to build a foundation toward this career path. It may be especially helpful to thoroughly study Mod 03: Credit Markets, Loan Defaults, and Expected Loss.

See salaries and explore the career path for Commercial Loan Officer

Reinsurance Underwriter

Reinsurance Underwriters assess and manage risk for insurance companies. This course will help build your knowledge of risk management principles and help you understand important concepts such as expected loss.

See salaries and explore the career path for Reinsurance Underwriter

Auditor

Auditors review financial records and ensure that they are accurate. The course will help build your fundamental knowledge of accounting and financial statement analysis, which are essential to the role of an auditor.

See salaries and explore the career path for Auditor

Actuary

Actuaries use mathematical and statistical models to assess risk and uncertainty. This course will provide an introduction to risk management and its importance.

See salaries and explore the career path for Actuary

Financial Advisor

Financial Advisors help individuals and families manage their finances. Many hold advanced degrees in business or finance. This course may be useful to those that have a strong foundation in finance concepts but would like to gain additional knowledge in areas like risk management and credit analysis.

See salaries and explore the career path for Financial Advisor

Management Consultant

Management Consultants help organizations improve their performance. This course will improve your knowledge of assessing risk to efficiency and identify areas for improvement.

See salaries and explore the career path for Management Consultant

Financial Analyst

Financial Analysts make recommendations on investments and financial planning to individuals and businesses. The course will help you understand basic ideas about financial risk and how to analyze financial statements. This knowledge is important to succeed as a financial analyst.

See salaries and explore the career path for Financial Analyst

Data Scientist

Data Scientists use data to solve business problems. By taking this course, you will learn about important risk management and credit principles and how to use data to mitigate risk.

See salaries and explore the career path for Data Scientist