Retail Credit Risk & Credit Scoring

Overview:

Introduction

Risk and risk management are discussed at the outset of this course, whether it be in daily life, finance, or consumer loans. The most popular set of methods for managing and mitigating consumer credit risk will be examined: credit scoring.
It takes into account a variety of factors that have an impact on how we adopt and apply credit scoring in a consumer lending environment, as well as how we make sure it is effective in managing risk.

Course Objectives

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

• Regarding risk, banking risks, retail banking risks, and the credit cycle
  How scorecards are implemented and how to establish the cut-off are discussed during the scorecard construction process.
  the management of scorecards after use
  Fraud's effects on retail lending
  pertaining to the rules and laws that concern lending to consumers
  How to build your retail credit risk management team and select its members

Targeted Audience

• Analysts and policymakers who are new to credit and aren't necessarily daily involved in rating.
• Credit managers with experience who need a strategic perspective of lending and credit risk management methods.
• Regulators and auditors.

Course Outline

Unit 1: What is Risk?

• Risk definition
• Examining dangers
• Investigating banking risk, and then lending to consumers.
• The discussion of various hazards will include examples from both banking and non-banking firms.

The Credit Cycle and Principles of Credit Risk Management

Unit 2: Credit Data

• Data and the several sorts of data used to determine creditworthiness
• Data sources

Unit 3: Scorecard monitoring and tracking

• confirming that the scorecard remains appropriate for the intended audience
• Determining whether the scorecard is still functional
• Overrides and how they are handled

Account Acquisition

Account Management

Unit 4: Detection, prevention and analysis

• Regulation
• Bad Debt Provisions
• Management Information

Unit 5: Designing and Recruiting a Credit Risk Management Team

• Functions and roles
• Retention and recruitment