Credit Risk Fundamentals: Understanding Credit Risk

This Understanding Credit Risk course provides an introduction to the credit risk assessment process by the bank and external agencies and the ways in which banks are exposed to and protected from credit risk.


This is 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:

  • Define credit risk factors for an enterprise
  • Use SWOT and PESTEL to assess a business strategically
  • Apply Ansoff and the BCG matrix to analyse enterprise maturity and risk
  • Define sources of sustainable competitive advantage
  • Define lending rationale and purpose
  • Calculate ability to repay
  • Describe internal and external credit ratings
  • Describe good collateral
  • Explain subordination risk

Course Content

  • Providing a structured framework for credit analysis: Establishing the Reason, Risk and Repayment Capacity for a lending request
  • Exercise: Credit Risk Assessment:
  • Establishing the reason for borrowing: A closer look at the borrower, the purpose of the borrowing and the payback mechanism
  • Defining the key risks in a lending proposition: An examination of macro and sector risks, management and ownership structures and what they represent
  • Establishing the repayment capacity – determining the bank’s exposure, priority claim and structuring the terms & conditions of the borrowing


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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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