Learning Outcomes:

On completion of this Retail Credit Risk Management module II, candidates should be able to:

  1. Understand the importance of Retail Credit Strategies & policies.
  2. Understand the sequences and techniques of the Retail Credit Development Cycle.
  3. Describe how to assess retail credit.
  4. Explain how to build your own credit score and realise the scoring techniques.
  5. Read and understand the vintage reports.
  6. Understand how to verify and assess the key documents associated with lending

Retail credit risk is essentially different to corporate credit risk. Corporate risk is based on risk resulting from the default of a particular corporate customer, which normally means big numbers. However, retail credit risk is based on a portfolio made up ofof a large number of customers with small loans.

When we handle such retail credit risk, there are two sides to the picture:

First, we will look at the individual borrower, analysing their financial standing, which reflects their capability to repay.

Second, we consider the health of the retail credit portfolio and analysing its performance, taking into consideration the variety of ratios that reflect the healthiness of the operation.