Retail Credit Risk Management

Retail credit risk is fundamentally different from corporate credit risk and the two should not be confused. 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 of a large number of customers with small loans.

There are two sides to the retail credit risk 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.

Course Details: Online, self-paced.

Hours: 50– 70

Price: €599

Modules

Foundations of Retail Credit Risk

Retail Credit Risk Management

Leadership in Retail Credit Risk

On completion of the foundations module, the candidate should be able to:

  • Understand the importance of retail credit
  • Understand the concept of retail banking risk management
  • Explain how the credit risk team should be managed
  • Highlight the most common retail credit products
  • Explain the different types of risk for the bank
  • Understand how risk in reflected in pricing credit products

Candidates who have completed module II should be able to:

  • Understand the importance of retail credit strategies and policies.
  • Understand the sequences and techniques of the retail credit development cycle.
  • Assess retail credit.
  • Build credit scores and master scoring techniques.
  • Read and understand vintage reports.
  • Understand how to verify and assess the key documents associated with lending

Finally, on completion of the final module candidates should be able to:

  • Understand the recommendations of the Basel Committee on Banking Supervision on risk with particular focus on retail banking.
  • Understand the methodology necessary to manage the retail credit risk portfolio.
  • Understand the main features of Basel III and its requirements.
  • Know how to manage SME lending.
  • Understand the concepts of Islamic banking and realize what is allowed and what is not.
  • Outline examples of Islamic banking products.

Candidates take an online exam after completing the programme material and those who pass successfully are awarded the Retail Banking Institute Certificate in Retail Credit Risk Management.