Tag: best credit risk analyst certification course

The Cs of credit is different aspects on which a bank or a lender judges if the borrower is reliable. There are 7 Cs and if the borrower meets the criteria, then they are eligible for credit. To ensure this, many companies hire professionals to conduct credit risk assessments. These professionals gain their expertise after completing credit risk management courses that prepare them to handle complex situations. 

Get to Know the 7 Cs of Credit

 

• Cash Flow

 

Cash flow refers to how profitable a business is and if those profits can be presented to the bank. Steady cash flow requires a bookkeeping system that will help business owners provide the data to the bank. This will help to generate financial statements from the available data. To determine the condition of cash flow, it is important to understand cash flow calculation so that all data is accurate. 

 

• Capacity

 

This is another important aspect of credit. It is necessary to know if a business owner is capable of running their company and if the team is functioning at full capacity or needs more members to get work done. The easiest way to determine that is by assessing how much work has been done in a year and if the business is operational without any issues. 

 

• Commitment

 

It is necessary to evaluate one’s commitment to one’s business. There will be tough times but these can be overcome with proper strategies and business tactics. Business owners need to be invested in the growth of their company. 

 

• Character

 

The character of the business owner is of utmost importance when it comes to getting credit. The bank takes into account if the person had taken any loans or credit before and if all payments have been done on time. With reliable references, the bank can easily judge a person’s character and will be more comfortable providing credit or giving a loan. 

 

• Collateral

 

Before starting a business, every business owner needs to understand what collateral they can offer. The collateral can be business or personal, especially if it is property owned by themselves and not by a family member or acquaintance. 

 

• Capital

 

Every business needs to have funds to function properly. Capital should not only be set aside for emergencies but also to improve the quality of business and the services provided, without having to compromise. 

 

• Conditions

 

The conditions of the market or the industry can affect credit. If the industry is safe and the market is profitable, then the banks are more likely to approve loans. The conditions are also dependent upon the nature of the product or service. If a business has a product that will draw customers, profits are bound to increase. 

A credit analyst course with credit risk assessment will prepare students to tackle these 7 Cs. Imarticus Learning offers a Prodegree on credit risk and underwriting, and it is aimed at teaching students to conduct accurate financial analysis and manage loans in the current credit landscape. 

Why are credit risk and underwriting courses important? 

Now, many students may ask why a course in credit risk and underwriting is important. The answer is that every company needs to have such an assessment done and invests in credit managers to stay on top of the game. Therefore learning cash flow calculation, credit administration, and underwriting can lead to lucrative job offers. Credit risk and underwriting or CRU is a course with a curriculum that has been endorsed by industry experts and it comes with a mentorship program. These two aspects of the program help students develop specialized skills and gain industry experience. 

Imarticus Learning’s credit analyst course provides an industry certificate in collaboration with Moody’s Analytics. The live lectures with instructors are great for developing interactive skills. As a part of these credit risk management courses, Imarticus Learning offers 5 case studies where students are encouraged to use the latest trends in credit management and come up with solutions. Students are prepared for interviews. 

People these days spend a considerable amount of time on platforms such as Facebook and Instagram giving details about their life whether it is personal or professional. We also end up making a lot of purchases online with our credit cards and debit cards. Now, people also make digital payments via UPI, which is known as Unified Payments Interface.

Social media companies make a great profit from surveillance capitalism, which comprises gathering sensitive data from users, curating algorithmic inferences about preferences, and then utilizing this data to target specific audiences with advertising.  

Features found on Instagram’s app such as the Shop tab assists in furthering Surveillance capitalism. This has become an issue because social media platforms such as Instagram have now progressed from a mere video and photo sharing network service to an online commerce space. 

Another factor that has helped in this metamorphosis is that many business enterprises and individuals with a business account use Instagram for exposure and to generate brand awareness. The business account option lets you boost your posts and account and create brand visibility.

The Role of a Credit Analyst

Generally, a credit analyst is a financial expert who determines the creditworthiness of individuals, companies, and securities. If you enroll in a credit analyst course, you will be taught how to evaluate if an individual can repay their financial obligations by going through their credit history. They come to this conclusion after determining the subject and or individual’s financial health and economic stability, if it is favorable for repayment.

In order to be a credit analyst, you will need to have a background in accounting, finance, and related fields such as a credit risk management or credit risk modeling course.

Credit Risk Management Courses

Credit risk management courses equip people with the skills to determine the probability of a loss in case a borrower fails to repay their debts. In credit risk management, the financial expert will come up with models in the attempt to mitigate a loss in the event of a financial institution’s loan and capital loss at any given time.

Some best practices in credit risk are as follows:

• Constantly upgraded management models that last the complete life cycle of the model
• Real-time scoring and limits monitoring
• Strong stress-testing techniques
• The ability for data visualization
• Business intelligence tools to gather relevant information whenever and wherever required.

No career is ever complete without its share of challenges. Some likely ones that you may encounter are:

 

• Inefficient data management

 

The lack arising from accessibility issues with regard to data can cause delays and upset the smooth functioning of a system.

 

• Zero Group-wide Risk Mode

 

Without this, financial institutions will not be able to come up with effective and complicated risk measures.

 

• Reworks

 

Analysts face difficulty in coming up with model parameters frequently, which can lead to duplication and the bank’s productivity ratio.

 

• The Lack of Risk Tools

 

A robust risk solution is required to determine portfolio concentrations.

 

• Clumsy Reporting

 

With a huge amount of paperwork, spreadsheets tend to overwhelm analysts and burden them.

 How Credit Analysts can Evaluate Applicant’s Credit Worthiness from Social Media

A credit analyst course can help you to assess the credit score of a business or individual by looking at their social media handles such as Instagram.

1. Verify Information

The credit analysts can cross-check the credibility of information provided across all social media platforms. In case of inconsistency can raise suspicion.

2. Social Media Presence

The extent of reach and duration a person has on their social media pages can help to arrive at a higher aggregation of data.

3. Followers

The quality and quantity of followers that form the network of the business or individual can help to determine whether the business has a probability of success.

4. Reviews and Testimonials

The reputation of the business or individual reflected in the testimonials and reviews can help to provide an idea of the journey of the subject so far.

5. Response to Posts

By looking at the business’s post and the response they generate, the credit analyst can determine the reach and responsiveness of the business or individual and if they have any chance of converting potential audience into customers (in case it’s a business profile). An unresponsive social media account shows that the business does not value the audience.

For individuals and new businesses without a credit history, the social media account can account for a huge portfolio for determining your creditworthiness in the eyes of credit analysts.

Credit risk refers to the chance of suffering a loss as a consequence of a borrower’s inability to pay back the loan or comply with contractual commitments. Historically, the term has been used to describe the risk that a lender will not receive the owed principal and interest, resulting in a disruption of free cash flow and higher collection expenses.

Surplus cash flows may be recorded in order to give further credit risk protection. When a lender encounters increased credit risk, that risk may be addressed by increasing the coupon rate, which results in increased cash flows.

To decide if a person or business is a suitable applicant for a loan, a credit risk analyst examines and analyses their financial history. To put it another way, credit risk analysts estimate the likelihood of a borrower defaulting on a loan.

Best Credit Analyst Certifications

Certified credit analysts help clients or employers with the analysis of loan, investment, and other financial assistance program applications, as well as the examination of applicants’ financial data to establish eligibility for financial assistance programs.

 

• CCRA (Certified Credit Research Analyst)

 

CCRA is an internationally recognized credit analyst certification that equips seasoned professionals and recent graduates with expert-level knowledge of the credit markets and financial markets. The course equips students with a practical understanding of credit analysis, credit market strategy, financial analysis principles, and rating methodology, among other topics.

 

• CICC (Certification in Commercial Credit)

 

Certificate in Commercial Credit is an internationally recognized certification program that has been developed specifically for India and authorized by the Reserve Bank of India (“RBI”). Individuals with substantial experience in the management of credit risk may benefit from the CICC’s credit analyst course in India, which equips learners with the entire range of skills and expertise in commercial credit.

Why Should One Opt for this Course from Moody’s Analytics and Imarticus?

The credit lending life cycle in India is developing at a fast pace, making the nation one of the fastest-growing credit markets. The attitude of consumers is shifting, savings are declining, and the micro, small, and medium-sized enterprise (MSMEs) sector is exponentially expanding, leading to an explosion of Non-Banking Financial Corporations (NBFCs). Due to this growth, credit skills will be required by every firm. As firms increasingly rely on technology to expedite processes, occupations that demand a thorough grasp of credit shall become more important.

With the help of Moody’s Analytics, the Credit Risk and Underwriting Prodegree program was created by Imarticus to help students get a better knowledge of the lending markets in banking and non-banking financial institutions. These include sections on credit administration, credit underwriting, legal requirements, lending environment, and the influence of the innovation of technology on all of these areas of expertise.

This course will help the candidates:

• Find more about India’s retail credit environment as well as small, medium-sized companies.
• Obtain a thorough grasp of the whole lending process, including loan evaluation, underwriting, and administration.
• Understand the importance of proper research in retail loan decisions as well as small and medium-sized enterprises (SMEs).
• In executing a financial analysis to identify creditworthiness and evaluate the risk of retail credit exposure.
• Recognize the significance and ramifications of numerous FinTech breakthroughs in the credit area.