Credit Risk Fundamentals

This is an introductory guide to understanding the fundamentals of credit risk. The pathway will introduce the basics of credit risk and then delve deeper into how credit risks are assessed and what banks/businesses can do to protect themselves from it.

Pathway

Banking

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8 videos • 1 hour 35 minutes

Credit Markets
Risk
Credit Risk Introduction
Peter covers credit risk and its applications in the real world. Starting with both qualitative and quantitative assessments, before considering the consequences of a borrow default.
Peter Eisenhardt • 22:06
Credit Markets
Credit Analysis - Part I
Credit analysis is the process of determining whether a counterparty will honour its obligations in a transaction. It involves balancing what is gained if they meet their obligation against how much is lost if they do not. To make these assessments, there are a plethora of factors to be taken into account. In this first video of the series, Nick specifically covers three accounts - The Balance Sheet, the Profit and Loss and Cashflow - as factors of a credit analysis.
Nick Beeson • 08:39
Credit Markets
Credit Analysis - Part II
In this second video of the series, Nick expands on the previous video by exploring how the accounts - the Balance Sheet, the Profit and Loss and Cashflow - interlink and how transactions ripple through these three accounts.
Nick Beeson • 11:52
Credit Markets
Credit Analysis - Part III
In the final video of the series on credit analysis, the example from the previous videos carries over. Nick explains the working capital cycle and how its funding can cause problems.
Nick Beeson • 11:39
How a Bank Works
How Banks Lend Money (1/3): The Basics of Lending Framework
In the first part of this three part series on the ‘basics of lending’, Paul provides some context on its importance and discusses the lending strategy and objectives of a typical commercial bank.
Paul Taylor • 05:46
How a Bank Works
How Banks Lend Money (2/3): The 3Cs and the PARTS Framework
In this second part of the series, Paul provides an overview of the three Cs for assessing the creditworthiness of a potential borrower. He also explains the PARTS framework.
Paul Taylor • 11:54
How a Bank Works
How Banks Lend Money (3/3): Example Transactions
In the final part of the series, Paul supplements his previous videos by examining two loan requests to demonstrate how the Three Cs and PARTS work in practice.
Paul Taylor • 12:05
Risk
Financial Sectors
Corporate Credit Approval Process
In this video, Iain explains the structure and key content of a credit proposal, and how corporate credit information should be presented in an approval process.
Iain Hoggarth • 11:29