Credit Risk

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					»   RISK in FOCUS
    Credit Risk
    6.5 CE HOURS

»   Credit Risk – the risk that a counterparty will be unwilling or unable to make payments as they fall due.
    It comprises pre-settlement risk and settlement risk.

» About this Course
    The current credit crisis has prompted the markets      Participating in this workshop will equip
    to scrutinise risk management practices. It is now      participants to:
    more important than ever for staff at every level to
                                                            » Consider the issues in credit risk in the context
    gain a thorough understanding of risk, how it can
                                                               of your organisation
    be identified, measured and managed.
                                                            » Understand where the risks reside within the
    Risk in Focus – Credit Risk has been developed
    for staff joining the risk management area of a         » Explain the core concepts involved in credit risk,
    bank or an energy utility. Those already employed          and the fundamental terminology used
    in the financial markets and who desire additional      » Understand governance principles of credit risk
    information about how the financial markets             » Discuss the measurements of credit risk
    have evolved to manage risk would also find this
                                                            » Discuss the role of credit ratings in assets
    program ideal.
                                                            » Understand the role of CDOs and CDSs

    This practical and interactive workshop will draw       » Explain the use of credit limits to manage risk

    upon the experience of Susan Campbell, an               » Discuss how this market is evolving in light of
    extremely well regarded facilitator who makes dry          regulatory action, and the possible impacts
    topics come alive! She is also an ex-practitioner       » Understand the risk management standards as
    with a wealth of experience in risk management.            used in banking
                                                            » Consider how major risks link together
    Risk in Focus – Credit Risk will provide insight
                                                            » Discuss the 2007/8 credit crisis and the
    to the following areas:
                                                               government responses
    » Importance of credit risk
    » Key terminology and core concepts
    » The risks that occur within this market
    » Credit risk and how it is managed
    » The different causes of credit risk
    » Risk treatments and controls
    » Outline of credit derivatives
    » Reporting of credit risk
    » Current practices in credit risk

    Credit Risk

» Length
    9.00am – 5.00pm
                                                                               » Course Agenda
                                                                                What is credit risk?

                                                                                How does credit risk fit in?
                                                                                » Definition
                                                                                » Categories of credit risk
                                                                                » Causes of credit risk
                                                                                » What is the credit crunch?
                                                                                » What are sub-prime loans?
                                                                                » From sub-prime to global credit crunch

» Recommendation                                                                Policy
    This is a level 2 program and as such would not be suitable for             » Strategy
    those seeking advanced training in risk management. Participants            » Scope
    with no knowledge of risk management practices may find benefit in          » Credit risks within the banking system
    attending AFMA’s Risk Management – the Fundamentals program
    prior to attending this workshop.                                           Regulatory issues
                                                                                » Capital requirements of regulators
    Please also note that participants will be emailed one week out from
    their workshop date with a pre-course information pack, which will          Measurement of credit risk
    include:                                                                    » Models
                                                                                » Credit risk of derivatives and pre-settlement
    A   In-depth Case Study
        This will form the basis for group discussions
                                                                                » VAR – overview
    B Credit Risk Questions                                                     » Systems – weaknesses and problems
        It is strongly recommended that participants take an opportunity        » Credit risk techniques
        to review and answer the Credit Risk Questions, as these will           » Hedging techniques -CDS, Basket and
        provide delegates with a greater opportunity to interact during            EDS
        the workshop                                                            » Asset Back securities

» Risk in Focus                                                                 Overview of rating process
                                                                                » Problems within the rating process
    Risk in Focus is an important series of workshops which explore             » What are CDOs?
    the four key areas of risk management. The series is designed for           » CDOs performance
    individuals who have previously attended Risk Management – the              » Why did they get a AAA rating?
    Fundamentals and who are looking for additional, more focussed,
    training on this topic. If you are new to the market or just looking for    Management of credit risk
    a better understanding of how the markets operate then the Risk in          » Credit Limits and ratings
    Focus series will help.                                                     » Mitigation techniques
                                                                                » ISDA and Credit Support Annex
    Other workshops in the Risk in Focus series include:                        » Collateral management
                                                                                » Lessons learned
    1. Market Risk
    2. Operational Risk
                                                                                Monitoring and reporting of credit risk
    3. Credit Risk
                                                                                » Style
    4. Liquidity Risk
                                                                                » Information
                                                                                » Frequency

    Credit Risk

» Personal Details
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» Courses                                                                                                          Terms and Conditions
    Please refer to for latest workshop dates & times.
                                                                    date of course                                 Payment Terms
                                                                                                                   » For AFMA Members, invoices are issued upon
     q       Market Risk                                                                                             enrolment and are payable within 14 days of being
     q      Operational Risk                                                                                       » Full payment is required at the time of registration
                                                                                                                     from non-member organisations.
     q      Credit Risk
                                                                                                                   Cancellation and Transfers
                                                                                                                   » To obtain a full refund, delegates must notify AFMA in
     q      Liquidity Risk
                                                                                                                     writing at least 10 working days prior to the program
                                                                                                                     start date that they wish to transfer to an alternate
                                                                                                                     program, or cancel.

» Fee per course
                                                                                                                   » Delegates who transfer or cancel from a program
                                                                                                                     inside 10 working days from the program start date
                                                                                                                     are liable for the full program fee. No refunds will be
     q      Member                            $874.50 inc GST                                                        given in this instance.
                                                                                                                   » Substitutions can be made, with prior notification
     q      Non-member                        $1,094.50 inc GST                                                      to AFMA, at any time up to the program start date
                                                                                                                     with no penalty

    This document becomes a Tax Invoice for GST purposes upon completion and payment. Please                       Non attendance
    photocopy and retain for your records.                                                                         » If a delegate fails to attend a program, program
                                                                                                                     fees will not be refunded or allocated to another

» Method of Payment                                                                                                General
                                                                                                                   » AFMA reserves the right to cancel, postpone or
                                                                                                                     re-schedule programs due to low enrolments or
    Attach cheque made payable to AFMA or provide credit card details below:                                         unforeseen circumstances. Full refunds or transfers
                                                                                                                     will be given in this instance.
                                                                                                                   » AFMA is not liable for any costs incurred by the
    q Visa q Mastercard q American Express q Diners Club                                                             attendee if the program is cancelled or postponed.
    Please note a surcharge applies of 3% for American Express and 4% for Diners Club.                             » AFMA reserves the right to change course fees,
                                                                                                                     dates, content, speakers or method of presentation
                                                                                                                     at its discretion.
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                                                                                                                     time of publication but may be subject to change.
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