KMBNFM05 FINANCIAL AND CREDIT RISK ANALYTICS UNIT 1 Introduction Financial Credit: Meaning and Objective, Credit Risk, Credit Analysis, Seven C's Credit Analysis Process, Credit Process, Documentation Loan Pricing and Profitability Analysis, Regulations, Types of Credit facilities: Various types of Credit facilities Cash Credit, Overdraft, Demand loan Bill finance: Drawee bill scheme, Bill discounting UNIT 2 Trade and Credit Risk Sole banking arrangement, Multiple banking arrangement,, Consortium Landing Credit trust, Credit Priorities, Credit Acquisition, Statutory& regulatory restrictions on Advance Credit Appraisal: Validation of proposal, Dimension of Credit Appraisal, Structuring of loan document Risk Credit, Credit risk Rating, Credit worthiness of Borrower Purpose of Loan, Source of Repayment, Collateral Cash flow UNIT 3 Letter of Credit and Loan Commitmants Quasi Credit Facilities: Advantage of Non-Fund Facilities, Various types of NFB facilities Various types of NFB facilities: Various types of Letter of Credit, Assessments of LC limit , Bill Purchase/ Discounting under LC Loan Commitments, Un -funded lines of Credit and their Characteristics, Characteristics of unfunded lines of credit include: Various types of Bank Guarantees: Performance guarantee, Financial guarantee, Deferred payment guarantee Types of performance and financial Guarantees, Assessments of Bank Guarantees Limit UNIT 4 Operational Risk : Overview Risk and Uncertainty, Financial Sector and Risk Types Operational Risk Management: Recruitment and Training, Work flow Design Work flow Documentation, Delegation of Authority Independent Internal Audit, Independent Compliance Functions Independent Risk Management System System Audit, Corporate Governance, Whistle blower Policy, Risk Management Cultural  UNIT 5 Credit Analysis & Rating Importance of Credit Analysis, Pricing of Loans Credit Risk Analysis( debt ration & Risk of leverage) Analysis of Working Capital, Liquidity Operating and Cash Cycle Risk Credit Rating: Measurement of Risk, Objective of Rating, Internal & External RatingModel Credit Rating, Methodology of Rating, Internal and External Comparison
