Corporate Credit Risk: Reviewing 3rd party Corporate Credit Risk Models

This “Corporate Credit Risk: Reviewing 3rd party Corporate Credit Risk Models” course enables participants to critically evaluate forecast financial statements and cash forecasts, identify the model value drivers and stress test the robustness of the business model with respect to DSCR, ICR and covenants.

By identifying business and financial risk, participants will be able to evaluate proposed and existing risk mitigation measures.

Suitability

This is an advanced course for graduates with a working knowledge of accounting and financial modelling wishing to prepare for roles in Credit Risk Review functions.

Learning Outcomes

At the end of this course, participants will be able to:

Critically evaluate the construction, assumptions and outputs of a credit risk model
Analyse and differentiate sources of commercial and financial risk
Identify the risk management and mitigation measure of the firm
Evaluate hedge effectiveness for FX and rates exposures
Establish appropriate stress tests of the business model
Compare stress tests outputs with covenants
Evaluate the funding and liquidity of the firm
Form an view of the debt capacity and DSCR of the enterprise

Course Content

Is the model deal-appropriate?
Best approaches for model review
Error checking formulas
Model outputs and functionality
Consistency of definitions with rating methodology
Preparing reported financials for credit analysis
Testing assumptions
Analysing the financing of growth
Testing investment consistency with growth strategy
Testing distribution policy against debt covenants
Testing debt modelling and gearing impact
How to best test the rigour of a model
Understanding the value drivers and creating appropriate stress tests
Introduction to market risk measurement – VAR
Valuing financial instruments and analysing hedge effectiveness

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of a cohort was promoted within 2 years after participating in an Alpha course.

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of participants felt more confident in their role, following an Alpha commercial leadership course.

Why study with Alpha?

Innovation and creativity born from experience

We are thought leaders in instructional and learning journey design and holistic solution architects. We have extensive finance and investments experience combined with skills application to deliver performance improving results. We develop immersive learning environments that maximize time to productivity, support talent retention and added value to improving quality of hires.

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We are focused on mining the embedded organisational intellectual capital for the benefit of the next generation. We create and curate best in class practice gathered from our experience with the leading financial institutions. We design our programmes with the end in mind – what results are you trying to achieve with this intervention? What metrics will we set ourselves to achieve that?

Generation Proof

Quality and innovation, using current market and industry best practices, have made us a trusted partner in delivering dynamic and motivating training for the financial and capital markets. Our programmes are generation proof and responsive to evolving learner needs and styles. Our solutions use a multi-stakeholder engagement strategy that expands beyond relationships between the learner and learning provider. We create connections with managers, peers and the wider business to drive impactful return on investment..

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