Credit Risk Fundamentals: Credit Risk Mitigation Techniques

The course provides an introduction to methods by which the Bank protects its lending by taking security, collateral, loan structuring and covenants


A foundation course for Graduate Entrants with no experience in Retail and Corporate banking

Learning Outcomes

At the end of this course participants will be able to:rn- Define Expected Lossrn- Describe the forms of collateral and evaluate their effectivenessrn- Describe forms of covenants and evaluate their effectivenessrn- Explain credit subordinationrn- Describe how subordination risk is mitigated by loan structuring

Course Content

– Covenantsrno Establishing the purpose of covenantsrno Types of covenant – representation and warranties; incurrence and maintenance covenantsrno Setting realistic covenants – definitions and headroomrno Problem situations with covenants – actions on a breachrno Events of defaultrn- Fixed and Floating Chargesrn- Collateralrno Types of collateral and charge available to the bankrno Perfecting collateral – where things can go wrongrno Understanding the impact of debt cushioningrn- Subordination in actionrno The ranking of creditors in insolvencyrno Corporate structures and the impact on lendingrno Contractual vs. Structural Subordinationrn- Is credit risk mitigation achievable in Cov-Lite structures?


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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.

Knowledge Exchange Evangelists

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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The team are so friendly and pleasant to work with, everyone is very professional and keen to help us. Building a relationship over the past couple of years helps us to feel like the Alpha team are even more able to understand our needs and provide more proactive solutions.
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