Featured Pathways

More pathways

Banking Essentials - Part I

This pathway will walk us through the basics of banks, starting with some of the different types and their main functions, then starting to look at the regulation faced by the banks, both before and after the Global Financial Crisis.

Greenwashing

Greenwashing is the act of distributing false information about something being more environmentally friendly than it actually is.

More pathways

Book a demo

Pricing

Ready to get started?

Plans & Membership

Our Platform

Expert led content

+1,000 expert presented, on-demand video modules

Learning analytics

Keep track of learning progress with our comprehensive data

Interactive learning

Engage with our video hotspots and knowledge check-ins

Testing & certification

Gain CPD / CPE credits and professional certification

Managed learning

Build, scale and manage your organisation’s learning

Integrations

Connect Finance Unlocked to your current platform

Featured Content

More featured content

Tackling the Cost of Living Crisis

In this video, Max discusses the cost-of-living crisis currently enveloping the UK. He examines its impact on households as well as the overall economy.

CSR and Sustainability in Financial Services

In the first video of this two-part video series, Elisa introduces us to sustainability. She begins by looking at the difference between sustainability and corporate social responsibility, two terms that can be easily confused.

More featured content

Book a demo

Pricing

Ready to get started?

Featured Pathways

More pathways

Banking Essentials - Part I

This pathway will walk us through the basics of banks, starting with some of the different types and their main functions, then starting to look at the regulation faced by the banks, both before and after the Global Financial Crisis.

Greenwashing

Greenwashing is the act of distributing false information about something being more environmentally friendly than it actually is.

More pathways

Book a demo

Pricing

Ready to get started?

Plans & Membership

Our Platform

Expert led content

+1,000 expert presented, on-demand video modules

Learning analytics

Keep track of learning progress with our comprehensive data

Interactive learning

Engage with our video hotspots and knowledge check-ins

Testing & certification

Gain CPD / CPE credits and professional certification

Managed learning

Build, scale and manage your organisation’s learning

Integrations

Connect Finance Unlocked to your current platform

Featured Content

More featured content

Tackling the Cost of Living Crisis

In this video, Max discusses the cost-of-living crisis currently enveloping the UK. He examines its impact on households as well as the overall economy.

CSR and Sustainability in Financial Services

In the first video of this two-part video series, Elisa introduces us to sustainability. She begins by looking at the difference between sustainability and corporate social responsibility, two terms that can be easily confused.

More featured content

Book a demo

Pricing

Ready to get started?

Book a demo

Pricing

Ready to get started?

Introduction to Credit Risk Mitigation

Introduction to Credit Risk Mitigation

Belinda Green

30 years: Credit risk specialist

Credit risk is the risk of financial loss to a lender should a customer or counterparty default. The accurate measure of credit risk is an essential tool for credit decision making and internal risk management. In the first part of this video series, Belinda will discuss the concept of credit risk - what it is, how it is measure?

Credit risk is the risk of financial loss to a lender should a customer or counterparty default. The accurate measure of credit risk is an essential tool for credit decision making and internal risk management. In the first part of this video series, Belinda will discuss the concept of credit risk - what it is, how it is measure?

Subscribe to watch

Access this and all of the content on our platform by signing up for a 7-day free trial.

Introduction to Credit Risk Mitigation

15 mins 12 secs

Overview

Credit risk is the risk of financial loss to a lender should a customer or counterparty default. It is managed through a variety of risk management techniques, including documentary mitigants and periodic reviews. The accurate measure of credit risk is an essential tool for credit decision making and internal risk management.

Key learning objectives:

  • What is credit risk?

  • Understand how credit growth facilitates economic growth

  • What are the types of credit risk?

  • How is credit risk measured?

  • Understand how we can mitigate and manage credit risk

Subscribe to watch

Access this and all of the content on our platform by signing up for a 7-day free trial.

Summary

How does credit growth facilitate economic growth?

When access to credit increases, consumers and businesses (and countries) can borrow, spend and invest more. This increased consumption and investment generates more income and boosts wealth. This then leads to an ever-increasing level of credit, which leads to more spending, investment and value creation.

What is credit risk?

Credit risk is the risk that a customer or counterparty will fail to meet its agreed contractual obligations and potentially cause the lender to incur a financial loss.

What are the two types of credit risk?

  • Direct (on balance sheet)
  • Contingent (off-balance sheet)

How is credit risk measured?

The most common approach to measuring credit risk is the Probability of Default approach, where expected credit loss is measured by assessing three key factors:

  • The Probability of Default (PD) - Measures the likelihood that the customer or counterparty will default on their agreed contractual obligations within a prescribed time period.
  • The Loss Given Default (LGD) - It measures the percentage of the bank’s exposure that is at risk, should the customer or counterparty default.
  • The exposure at Default (EAD) - It represents the total amount owed by the customer or counterparty at the time of default, net of any recovery amount.

What are the drivers of credit risk fluctuations?

  • Changes to macroeconomic environment
  • Changes in industry fundamentals
  • Changes to company’s business model
  • A deterioration in the quality and value of assets pledged as collateral

Highlight some forms of credit mitigation

  • Hedging the exposure with credit default swaps
  • Buying credit insurance
  • Selling the debt in the secondary markets

Subscribe to watch

Access this and all of the content on our platform by signing up for a 7-day free trial.

Belinda Green

Belinda Green

Belinda Green is a credit risk specialist, with a career spanning 4 continents and numerous sectors. She has spent over 20 years in commercial and corporate lending roles for FirstRand Bank and UBS, where she was director of Corporate Lending from 2002 until 2013. Belinda shifted into education in 2014 and was a Faculty Lead and Senior Trainer for Moody’s Analytics Learning Solutions in Dubai for over 5 years, leading and delivering training programmes across the Middle East and Africa. In 2019, Belinda launched her own training consultancy in London, delivering learning solutions to clients around the world.

There are no available videos from "Belinda Green"