Credit Risk Management

Catalog description

Credit Risk Management is designed to provide students with a comprehensive overview of the practice of credit risk management (CRM) from the perspective of a large institution. Since the historical credit crisis that resulted from the great financial recession of 2008-2009, it has become a critical part of a risk managers responsibility to employ sound credit risk management methodologies and processes. Students will develop a keen understanding of the four key steps in the process of credit risk management – origination, credit assessment, portfolio management, and mitigation/risk transfer. Topics to be covered include fundamental and alternative credit analysis, securitization, credit portfolio management, credit rating agencies, economic capital, credit insurance, surety bonds, letters of credit, credit risk measurement, and credit derivatives. Company structures, management, distribution and risk management approaches will be covered as well as current issues facing the credit risk industry. This course will help prepare students to pursue opportunities in risk management not just for financial institutions, pension funds or other large portfolio managers, but also for non-financial companies who have to continuously assess risks associated with critical customer, supplier, banking, or counterparty relationships. Throughout the semester students will be exposed to current risk related topics and issues and they will be able to demonstrate their understanding of them through presentations, group projects, and a final paper