This is an introductory guide to understanding the fundamentals of credit risk. The pathway will introduce the basics of credit risk and then delve deeper into how credit risks are assessed and what banks/businesses can do to protect themselves from it.
Watch all the videos and pass the test to obtain a certificate showing your completion of this Pathway. Certificates can be shared directly to your LinkedIn profile and social media accounts.
8 videos • 1 hour 35 minutes
Credit analysis is the process of determining whether a counterparty will honour its obligations in a transaction. It involves balancing what is gained if they meet their obligation against how much is lost if they do not. To make these assessments, there are a plethora of factors to be taken into account. In this first video of the series, Nick specifically covers three accounts - The Balance Sheet, the Profit and Loss and Cashflow - as factors of a credit analysis.
Nick Beeson • 08:39
In the first part of this three part series on the ‘basics of lending’, Paul provides some context on its importance and discusses the lending strategy and objectives of a typical commercial bank.
Paul Taylor • 05:46
In this second part of the series, Paul provides an overview of the three Cs for assessing the creditworthiness of a potential borrower. He also explains the PARTS framework.
Paul Taylor • 11:54
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