Certified Credit Risk Professional

CCRP

Individuals employed in a credit-related position or aspiring to a career in credit are encouraged to enroll in the program. Recognizing that many organizations seek to hire CCP graduates or students for credit positions, our Academy allows enrollment in its certification program even before obtaining related employment.

The Certified Credit Professional (CCP) curriculum is structured to ensure participants are knowledgeable in all areas of credit management. Holders of the certificate would be able to manage a credit department.

The CCP modules are structured and developed for RMA by leading subject matter experts with a focus on end-to-end credit risk management.

The CCP program is designed for independent study and enhanced by online learning and optional lectures. Obtaining the CCP designation can fit your busy lifestyle!

The Certified Credit Professional (CCP) Designation indicates that the individual has measureable knowledge of the skills required for a role in credit management. The future is bright if you are able to obtain the certified credit professional  from RMA. Enroll for the Exam NOW!

Course Modules

The Governance Framework For Credit Risk Management

  • An overview of the governance framework
  • What is risk appetite and risk tolerance
  • Risk appetite and risk tolerance setting and implementation
  • Building and maintaining an effective risk management framework
  • Where credit risk management and credit risk committees

The Operating Environment

  • An overview of the operating environment within which bank’s accept and manage credit risk
  • The factors that have influenced the current operating environment
  • The causes and consequences of the financial crisis and their on-going impact
  • Basel III and other regulatory initiatives
  • Opportunities and threats – challenger banks and shadow banking

Stakeholder Management

  • Who are the key internal and external stakeholders
  • What are stakeholders’ interests?
  • Why stakeholders’ interests are different

 

Defining Credit Risk

  • The largest risk in most financial services balance sheets
  • What is credit risk?
  • Risk appetite statements
  • The different types of credit risk:
    • Sovereign
    • Corporate
    • Retail
    • Systemic
    • Counterparty
  • Concentration risk
  • Systemic risk & correlations

Credit Risk In Financial Products

  • Loans and overdrafts
  • Project finance
  • Construction finance
  • Private public partnerships
  • Government and corporate bonds
  • Equity and mezzanine debt
  • Credit derivatives
  • Counterparty exposure from traded products
  • Trade finance
  • Mortgages
  • Credit cards

The Basic Principles Of Lending

  • Appraisal techniques
  • Credit assessment for personal clients
  • Credit Assessment for retail clients
  • Business clients
  • Corporate Clients
  • Private Wealth Clients
  • Group credit appraisal
  • Development finance
  • Project finance

Credit Risk Management

  • An overview of credit risk and best practice credit risk management
  • Customer, product and risk types
  • Key elements of the credit risk management framework

 

Managing Credit Risk

  • Credit risk appetite – setting and monitoring
  • Credit risk authorities – delegation and oversight
  • Credit risk committees – best practice for establishment and operations
  • Concentration risks – setting policy and portfolio monitoring
  • Credit policy – setting, implementation and monitoring compliance
  • Models – review and approval of credit risk models, data issues
  • Product risks – product programme review and approvals
  • Controls –setting standards and monitoring compliance
  • Reporting – defining reporting requirements and regular monitoring
  • Audit reports – commissioning reviews and assessing audit findings

Credit Risk Assessment And Management

  • Approaches to assessing credit risk – individual judgment vs automated systems
  • The credit risk cycle – assessment, decision making, post approval management
  • Early warning signs – how to identify warning signs and how to address them
  • Problem credit management – how to minimize the risk of losses

Credit Risk Mitigation

  • Structuring credit exposures – a four step approach (Exposure profile, Ranking, Safeguards and Pricing)
  • Exposure profile: Key features of the main credit products offered or traded by the bank: loans, leases, derivatives, bonds etc.
  • Ranking: Senior, pari passu and junior positions
  • The role of collateral and other forms of subordination such as structural or effective subordination
  • Safeguards: Key types of mitigation found in credit documentation and the purpose and effectiveness of each
  • Pricing: The need to be compensated for expected loss
  • Portfolio management and techniques to spread risk: Syndication, sub-participation, whole loan sales, credit derivatives, securitization 

Credit Scoring

  • What does credit scoring measure?
  • SWOT analysis
  • Basic principles
  • Data collection, refining and perfection
  • Measuring effectiveness
  • The challenge of “refer”
  • Evaluation – back testing
  • Additional data
  • Credit scoring in practice

Credit Risk Strategy

  • Maximisation vs optimisation strategies – enhancing risk adjusted returns
  • Portfolio theory and correlation concepts
  • Contagion risks
  • Liquidity assumptions

Measuring Portfolio Risk

  • Loss distributions and loss tails
  • Quantifying expected and unexpected losses
  • Credit v market risks
  • Credit risk concepts
  • Probability of default
  • Loss given default
  • Exposure at default
  • Time to default

Credit Portfolio Models

  • Modelling approaches
  • Volatility, correlation, VaR and Monte Carlo simulation
  • Default models
  • Mark to market models etc
  • Accounting asymmetry
  • Advantages and disadvantages of models

Sensitivity Analysis, Scenario Analysis And Stress Testing

  • The approaches – quantitative and qualitative
  • Why it is necessary
  • Framework for stress testing
  • Benefits of stress testing

Credit Portfolio Management

  • Credit portfolio management – location within firm and role (advisory, decision makers, profit centre)
  • Privileged information, price-sensitive information and Chinese Walls
  • Public private partnerships

 

Capital Allocaion

  • Purpose of capital and its importance in relation to credit risk
  • Regulatory capital (Basel 1-4): Measuring regulatory capital for credit risk under standardized and advanced measurement approaches
  • Changes to the Basel capital framework 2011-2019, Basel 2.5 and Basel III & 4
  • Composition of rating agency ‘Eligible capital’ and key difference from regulatory capital
  • Economic Capital: What the Economic Capital actually represents, its uses within a bank and potential issues with calculation

Problem Loan Management

  • Classic warning signs
  • What action to take and when
  • Forbearance and debt management/recovery systems
  • The first loss is often the cheapest
  • How to manage recoveries