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7 little changes that will make a big difference: Credit risk certification in India

Posted on by Imarticus Learning

7 little changes that will make a big difference: Credit risk certification in India

Objective: A high growth career in Credit Risk

Financial markets provide some of the most rewarding careers across sectors. One such area in which careers are being made is the huge lending industry. In the lending industry, credit risk management expertise provides a plethora of job profiles such as operational risk manager, risk analysis researcher, enterprise risk management lead, credit analysis associate, and insurance underwriting, among other high growth profiles.

However, it is not so easy to get an entry into this industry, and if you are already in credit risk management, job mobility and promotions are a huge problem.

The effective way of making a career in credit risk

There are many ways to get into these roles or pursue a promotion in them. Going for one of the reputed credit management courses can help you reach this goal. Credit risk certification that is recognized by the industry can solve some key problems and make it possible to attain the goal of having a thriving career in credit risk management. Pursuing the best credit risk certification in India can make all the difference to your work profile. 

7 ways in which a credit risk certification makes a difference

Here are 7 key ways in which a credit risk certification makes a comprehensive difference for you in your career goals:

 

  • Strategic overview of the lending landscape.

 

Going through one of the reputed credit risk management courses will enable a credit analysis professional to get a strategic view of the lending industry. For an ambitious professional, who sees himself rising up the corporate ladder, it is necessary to develop a strategic perspective. Having a broad view of the market is what is expected of key decision-makers.

 

  • Fintech opportunities

 

Several major fintech companies have come up in recent years. They have created massive job opportunities and provide an option to those who are looking to switch job profiles. One of the best ways to catch the attention of recruiters is to have a certification that shows knowledge of the area in which one is seeking a role. 

 

  • Valued certification

 

When a credit risk certification comes with a tie-up with a global institution like Moody’s Analytics, it has demonstrated value in the job market. It also enhances prospects within one’s current organization. A certification communicates knowledge and intent to employers all over the world. Moody’s is a globally renowned financial institution. 

 

  • Comprehensive curriculum

 

A self-learner can be lacking in confidence because of having missed out on working in some key aspects of the industry. For example, someone in sales could feel intimidated by due diligence. But going for certification takes a professional through a comprehensive curriculum where the fundamentals of each key segment are taught. 

 

  • Live interactions with experts

 

Undergoing a course gives the opportunity to interact with experts and go deeply into every section one is truly interested in. It is a proven method of learning wherein a participant gets an outlet to express his doubts and get them cleared. These are also opportunities to get mentors for one’s career.

 

  • Upskilling for digital technology

 

Joining one of the credit risk management courses online fulfills the dual role of providing skills in the credit risk domain, as well as in digital technology. If you have been off academics for a long time, you would be feeling the need to reorient yourself to fit into a digital-first world. Credit risk management courses by modern institutions such as Imarticus teach you tools relevant to the technology-driven lending industry. 

 

  • Learning at an affordable duration

 

There are many credible educational programs to go through, but these are usually of 1-2 years duration. While they carry legitimacy in the industry, this is a huge investment in both time and money. Credit risk management courses online give your knowledge legitimacy in a much shorter duration. 

Conclusion: Credit Risk Certification is the definite solution

Credit management courses online can create tremendous value for any finance professional who wishes to join the segment. There are many reasons, such as the collaboration with Moody’s Analytics, that makes this one of the best credit risk certifications in India. 

Imaritcus brings deep learning, relevant today, to all their courses. This makes the engagement meaningful and transformative for their participants. The credit risk certification course, Imarticus offers is readily accepted by the industry.

Within a short duration, it reorients the participant, provides learning of fundamentals, and makes a professional savvy in the technology era – features that would be it the best credit risk certification in India. Getting a certificate through the institute includes placement assistance and contacts to navigate into the industry. 

Credit underwriting certifications are revolutionizing the way students learn

Posted on by Imarticus Learning

An underwriter’s job is to determine whether or not a financial risk is worth incurring. The evaluation is paid for by a commission, premium, spread, or interest, which is usually paid in the form of a commission, premium, spread, or interest.

Depending on the situation, underwriters do several tasks. In the financial sector, underwriters assist investors in determining if a risk is worth taking or assist a firm in conducting an IPO (IPO). When you apply for a personal loan, health insurance, or a mortgage, you will be interviewed by underwriters.

A bachelor’s degree is normally required to act as a credit underwriter. If you have computer skills and appropriate job experience, some businesses might hire you as an underwriter with no degree. However, certification is necessary to advance to the position of underwriter manager or senior underwriter.

In the financial world, credit analysis is a basic idea. Corporate and retail lending, as well as project finance, commercial real estate, trade finance lending, debt capital markets, and even retail portfolio management, are all built on this foundation. This is a must-have talent for anybody interested in working in corporate or retail banking. However, because credit risk affects everyone, it is essential for the bulk of investment banking or market-related positions.

Furthermore, credit risk positions exist in non-financial organizations as well, since they incur credit risks on their channel partners, vendors, and other third parties. Credit risk management is a fascinating, financially lucrative, and promising career option. If you’re already persuaded that this is the job for you, these courses will provide you with the practical skills you’ll need to get started and will raise your resume significantly.

Credit risk underwriting courses

Credit underwriting certifications are revolutionizing the way students learn, as they have an eminently practical focus. Risk management is the essence of the business of financial institutions. The changes experienced in risk regulation in recent years require permanent updates from professionals dedicated to risk measurement and management. These profiles are becoming increasingly in demand and require multidisciplinary training: regulation, management, quantitative methods, data analysis, etc.

Objectives

  • Acquire a global vision of the fundamentals of the analysis and management of the main risks, the procedures followed by this risk function for its management, and the tools on which it relies. 
  • Understand the main and most current methodologies for measuring credit risk, as well as the entire credit risk cycle: admission, analysis, monitoring, recoveries, tools, etc. 
  • Knows the regulatory framework, both from the point of view of capital and provisions.

In addition, the school makes the Webex option available to students through our Virtual Classroom. The Virtual Classroom also fosters communication between students, teachers, and Academic Directors of the program. This is a tool for the student to always have available the didactic material, exercises, case studies, and readings that are used in the Master’s sessions.

To whom it is addressed to

  • Professionals in the risk and control departments of credit institutions.
  • Professionals in financial, risk audit, validation, investment, and planning departments who wish to gain a global vision of the business of financial institutions and the main risks they face.
  • Professionals within the departments responsible for the implementation and management of risks and in technology departments linked to risk areas.
  • Professionals in regulatory bodies, central banks, and supervisory bodies.
  • Professionals in risk consultancy.
  • Other professionals in the sector are interested in deepening their knowledge of risk management or interested in acquiring the necessary skills to develop their professional career in risk and related areas.

Conclusion

Interested in credit risk training? At Imarticus we offer Credit Risk and Underwriting Prodegree that provides an overview of the main concepts you need for a high-powered career in commercial banking, credit rating, private lending, insurance, corporate credit, and much more. Visit our website today and discover more about our credit risk underwriting courses and credit management courses online.

Assessing a knowledge-based approach to commercial loan underwriting

Posted on by Imarticus Learning

The AI-based transformation is slowly taking over the major business sectors. For finance especially, it has proven to be an excellent support tool. From accounts to credit risk underwriting, the benefits of AI tools have been immensely profitable. The same goes for commercial loan lending and underwriting. As this is a highly data-driven process, AI tools can provide immense support in the process.

Credit risk analyst is a highly demanding career these days, and this could be a terrific option for students thinking about their careers. Many institutions provide compact credit risk underwriting courses. You can check out Imarticus Learnings’ credit risk analyst course to enhance your skills to the next level.

Here, we are going to explain what commercial loan underwriting is, how a knowledge-based approach or how AI tools can benefit the process, and some other things that should be kept in mind.

What is commercial loan underwriting?

From the start-up stage to asset acquisition to ongoing expenses, there are a lot of reasons a business needs loans for. A bank or financer usually wants to analyze the reasons for a business borrowing loans along with its financial condition. This process is called commercial loan underwriting.

This process examines whether a business would be able to pay back the borrowed amount along with the interests. Credit risk management courses basically teach you how to analyze the chances of a successful repayment or the failure of the same.

Benefits of a knowledge-based approach

As this is a completely data-driven process, AI tools can provide significant support which in turn results in better time management, swift decision making as well a lesser chance of human errors occurring. The major benefits of a knowledge-based approach to the whole loan underwriting process are as follows:

  • It helps in merging traditional, social, and online data sources. Which results in a bigger amount of data flow that helps in swift decision making.
  • Misperceptions can be corrected in due time with the help of AI-delivered information.
  • The structured internal big data makes up only about 20% of the decision-making process. So by adding the rest of the unstructured data into the process, the decisions made are a lot more beneficial to both parties.

Key things to keep in mind

To make sure that this process works as efficiently as possible, there are a few key things that should be kept in mind. Such as:

  • Customer experience should be the focus of the process. And it should be done by combining all aspects of the knowledge-based approach together.
  • Some companies use cognitive stimulation, some use natural language processing while others use computer vision to help the process. The ideal structure would be to combine all these factors into building a giant machine that works smoothly and efficiently.
  • The end result of the customer experience-oriented process is to provide the customers with their needs before they have a chance to ask.

Conclusion

AI has been causing a steady change in the last few years. And it is going to grow more and more in the coming years. This is the prime time to associate yourself with data-affiliated courses if you are thinking about good career prospects for your future. The question is where to enroll for good credit risk underwriting courses and credit risk management courses. Check out Imarticus Learnings’ credit risk analyst course to sharpen your skills to the max.

Understanding the Trends in the Use of Models and Data for Credit Risk Management

Posted on by Imarticus Learning

Now in the information age, data and information are getting a more important role everywhere, especially for decision-making tasks, classification, and recommender systems. With the use of technologies driven by artificial intelligence, machine learning, big data, and others, we have the duty to understand how we can use these technologies and the vast amount of information for the study and management of credit risk.

As a specialist, you must understand the trends and the different models used by large financial companies and know how to use the different tools available to minimize risks.

If all this sounds interesting to you, then read on, because at Imarticus we offer the CRU-PRO degree program where you can learn more about these topics and get certified so you can take your career to the next level.

 How to Use Data?

Thanks to the information and analysis of the millions of data that is collected every day, it is possible to detect trends and patterns that can be used to predict or make decisions. Data analysis is widely used today due to the rapid advancement of artificial intelligence and can be used in any field such as medicine, finance, meteorology, and content creation.

For financial and credit risk analysis, it can be used to detect patterns of risky behavior given the known history of some businesses. At Imarticus, we know the importance of technological advances and the experience of other financial institutions, which is why in our CRU-PRO degree, we offer you the possibility to learn together with Moody’s Analytics, one of our industrial partners. Moody’s Analytics is a subsidiary of Moody’s Corporation that specializes in the area of financial risk.

 How Will You Learn?

The CRU-PRO degree we offer enables you to acquire the theoretical and technical knowledge to enable you to perform as a specialist in any scenario. When you enroll, you will have to take a series of courses such as credit risk management courses, credit analyst courses, credit risk modeling courses, and more with the most qualified teachers during 14 weeks. You will also have to complete 5 case studies to check that you have acquired all the knowledge and skills you have learned during the program.

credit risk analyst course What Else do I Get When I Take a CRU-PRO Degree?

With our CRU-PRO degree, you also have access to our career service, which will accompany you all the time to improve all kinds of skills so that you have a complete education at the end of the program. This service will help you build a professional profile that corresponds to what is sought in any job offer. As well, we will also help you prepare for the different types of job interviews. We can assure you that by the end of the program, you will have the knowledge and confidence to become a financial risk specialist.

 What Can You Become?

Some of the different positions you can aspire to after completing the program are Operational Risk Manager or Credit Risk Manager. You may also have the experience to become an Investor or start in a Credit Financing Manager position.

 Conclusion

With this program, you can add great value to your professional profile as you will have theoretical and technical knowledge about risk management.

In addition, you will be aware of all the current most efficient methods using the latest technology to detect credit risks. Upon completion of the credit risk management course, you will have an industry-approved certification that will allow you to showcase the knowledge you have acquired and will open many doors to all kinds of job offers.

How to Alleviate Foreign Trade Credit Risks in International Trade?

Posted on by Imarticus Learning

Entering a foreign country can bring several significant growth opportunities for a business. However, trading in an international market comes with its share of risks. If you are aware of the credit risks associated with international trading, you can take the necessary steps to eliminate them.

Let’s find out some of the major strategies using which you can effectively eliminate foreign trade risks during international trade.

  1. Check the Importers’ Credit History

The first thing that you need to do while foraying into international trade is to check the credit history of your importer carefully. There are multiple ways by which you can assess the creditworthiness of foreign importers.

Make sure to check the balance sheet, year-end income, and other financial elements of the foreign company.

Moreover, third-party credit reports, trade reference forms, and bank references are other ways to check the credit history of the foreign company.

  1. Understand the Business Rules of the Country

Each country comes with its own set of trading rules and regulations. Before entering a particular market, make sure to understand the trading customs and regulations of the country.

You can also consult professionals to become aware of the politics, culture, and economy of the target country. This will help you to get a better idea about how to conduct business in a new country.

  1. Seek Help from Credit Risk Experts

Foreign trade credit risks can pose a serious threat to the growth and expansion of your business. The credit risk management process has been significantly improved through automation techniques.

A professional credit risk expert equipped with a credit analyst course and credit risk modeling courses can help businesses eliminate potential foreign credit risks.

  1. Set up Credit Boundaries

Another effective method to minimize foreign credit risk is to set up a credit limit for international customers. These limits have to be based on the following factors:

  • Profitability
  • Cash flow limitations
  • Financial statements of the company
  • Credit reports

Moreover, the terms of the sales agreement need to be comprehensive and free from any ambiguity. You should set up a master sales agreement that would enable you to establish a strong basis for lending terms from the beginning.

Also, make sure that the foreign clients are aware of all the clauses of the agreement to avoid chances of misunderstanding in the future.

  1. Use Working Capital Efficiently

To reduce the risk of foreign credit risk, make sure to use your working capital in an efficient manner. Optimizing working capital use can be done through these ways:

  • Consolidation of the inventory
  • Using various financing solutions such as vendor financing
  • Efficiency ratio analysis
  • Restrictions with cost management

Notably, even the slightest change or improvement in inventory processing, payments or receivables can significantly impact cash flow.

  1. Handle Late Payments Effectively

A business should set up a standardized process to efficiently handle all late payments. Usually, the ideal time to collect overdue invoices is 90 days beyond the due date. Make sure to have arrangements for dealing with non-payment so as to manage credit risk effectively.

Sometimes, third-party institutions can help in offering additional protection in the following ways:

  • Letter of Credit
  • Promissory Note
  • Export Financing
  • Bill of Exchange

These methods can enable businesses to optimize accounts receivable.

You cannot avoid foreign credit risks while expanding to foreign markets with proper risk-eliminating strategies. By employing experts with the knowledge of credit risk management courses, you can reduce the chances of foreign credit risks.

With the modern credit analyst course and credit risk modeling courses, professionals can help businesses manage credit risk sufficiently.

Why Must Creditors Focus on Automating Their Credit Risk Workflow Processes?

Posted on by Imarticus Learning

Lending institutions conduct credit risk analyses before approving credit. For most lenders, credit risk analysis usually depends on several years of experience. Such credit risk management is a combination of astute loan portfolio analysis and an intuitive knowledge regarding borrowing risks.

However, owing to increasing competition and significant regulatory changes in the backdrop of economic uncertainty, creditors are focusing on automating credit risk workflow automation.

Credit risk management is a popular part of the banking sector today. You can undertake credit risk management courses to implement the knowledge in today’s evolving lending market. A credit analyst certification will help you to conduct credit assessments using modern automation techniques.

Impacts of Automating Credit Risk Management 

With a massive jump in credit requests, the lenders’ ability to analyze credit risk efficiently has declined. This has potentially led to a rise in loan default. However, with the automation of credit risk assessment, creditors can swiftly process loan requests in bulk without credit risk or increased expenses.

By including artificial intelligence and machine learning in credit risk management, credit institutions can enjoy a host of benefits. As a creditor, you can use modern technologies in various circumstances, which will allow you to draw crucial insights about borrowers from a large set of data.

Here are some of the ways in which automation impacts credit risk analysis, thereby benefiting creditors:

Increased Fraud Detection – Credit card and loan fraud is a massive business throughout the globe, which has been costing billions to lending institutions. However, such frauds can be efficiently reduced by automating the credit risk assessment process. Through predictive analytics, automation processes can be used to detect fraud risks associated with certain borrowers.

  • Scalability

It can be challenging for financial institutions to achieve scalability under conventional credit risk analysis systems. This is usually because creditors need much understanding about the lending sector so as to be able to process a vast number of documents for stacking, analysis, categorization, extraction, and more. With automation, institutions can easily manage the entire process without having to assess each case of credit risk individually. This can enable creditors to concentrate on offering additional services.

  • Compliance with Regulations

One of the significant benefits of automation is that it provides lenders with the flexibility to alter rules and implement them according to the basis of the criteria that you provide. Therefore, with automation, you can easily automate several processes that are prone to errors.

  • Enhanced Underwriting

Through credit risk management automation, a lender can carry out document creation, credit request approval, and granting with increased personalization. This can happen while still being within the regulations of the institutions. Moreover, automated credit risk assessment processes come with all loan-risk factors that can be otherwise neglected during conventional credit risk assessment.

Available Automated Solutions for Credit Risk Management 

Automating the credit risk management process helps lenders to eliminate high-risk customers while conducting a more accurate analysis of customers. Here are some of the most commonly-used automated credit risk assessment techniques:

  • General process automation
  • Low-code application platform
  • Cognitive and robotic automatic solutions

Bottom Line

Automation of credit risk assessment is widely applied off late. As a credit analyst, you need to be equipped with the knowledge of recent automation techniques predominant in the lending sector. With a credit analyst certification following a credit analyst course, you can enhance your decision-making abilities regarding credit risk assessment.

Credit risk management courses allow individuals to gain major insights into the crucial elements of the credit analysis process employed by banks. A credit analyst certification will also enable you to learn about various challenges that one can face during portfolio analysis.

 

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Improving the Credit Risk Process | Risk and Resilience

Posted on by Imarticus Learning

Corporate organizations or individuals often borrow money to meet their business requirements. This is where credit risk needs to be considered as there might be a loss if the loan is not paid back. Credit risk assessment is essential and the process needs to be improved constantly.

A CRU Pro degree in credit risk and underwriting from Imarticus Learning can be of great help. The credit landscape is evolving and it is important to maintain the best practices.

How can you improve the credit risk process?

The credit risk process can be managed and improved with proper infrastructure and visualization. If you are interested in credit risk analysis, you should consider the credit risk underwriting course from Imarticus Learning.

credit risk analyst courseThe course will help you leverage current data and maintain the scorecard model. Here are some ways in which you can improve the credit risk process.

  • Constantly Check Data Sources

New data sources are available every day and you can use them to improve your portfolio. This is why you should evaluate all data sources available and apply them to your scorecard model.

  • Scorecard Model Validation

Get your scorecard model validated by an independent auditor. A third-party auditor can check your scorecard model and help you understand how the model can be improved. This will not only help you maximize the effectiveness of your credit rules but also identify the model’s weaknesses.

  • Monitor Your Scorecard Model

Once your scorecard model has been validated, you should keep monitoring it. Scorecard models will degrade with time. But if you monitor it, you will know when you need to improve it. You can use specific resources to understand and track the rate of degradation. Then use specific software solutions to stabilize the model.

  • Use Artificial Intelligence and Machine Learning

AI and machine learning can be used to improve credit risk. Such new technologies can be implemented on newer scorecard models to compare them with older ones. You will be able to understand how your scorecard model has evolved from a more traditional model. A credit analyst course will teach you how to use AI and machine learning for credit risk assessment.

  • Use Current Software Solutions

There are several new software solutions available for credit risk management. You can use different tools to assess credit risk and manage the borrower lifecycle. You will also be able to keep your portfolio secure.

  • Be Aware of Financial Crimes

To improve the credit risk process, you need to protect your portfolio. Financial fraud can happen at any time. But it increases due to an unstable or uncertain economy. So, you should always use the best cyber security technologies to detect and eliminate third-party attacks. When you take up a credit analyst certification course, you will learn how to protect your portfolio better.

credit risk analyst coursesLearn Credit Risk and Underwriting

Students who wish to have a successful career in the financial sector can enroll in Imarticus Learning’s credit risk underwriting course. Imarticus Learning offers a credit risk and underwriting Pro degree. The course is in collaboration with Moody’s Analytics. It is ideal for students who want to learn about dynamic banking and loan markets.

Instructors guide students through the credit landscape of the country and help them understand the various ways of loan assessment and financial analysis. This credit analyst course teaches topics like credit administration, credit underwriting, and the use of new-age software solutions for better credit risk assessment. Imarticus Learning and Moody’s Analytics offers an industry certification for all students.

The credit analyst certification course from Imarticus Learning includes live lectures so that students can interact with instructors. Students gain valuable industry experience through this course. It is ideal for a career transition to the FinTech industry.

What Are Widely Used Underwriting Models in Credit Risk

Posted on by Imarticus Learning

Financial institutions around the globe manage and give loans to companies/businesses that need help. But hey have to manage the records of its clients and has to find out the possibility of non-payment. A good financial institution always has an expert team dedicated to this job.

They analyze the data/information of the clients and based on some attributes; they find out the trustworthiness factor on any particular client. This helps the bank to identify those clients who can ditch them in the future and thus they take measures accordingly.

In this article, let us discuss some famous methods which are widely used by people to calculate credit risk.

What is an Underwriting Model?

Underwriting is a structured process which is used by financial institutions/investors to find out the level/degree of vulnerability in terms of non-payment, late payment of dues can occur. It is a type of analytical job. It helps in reducing the chances of credit risk.

Let us discuss various types of underwriting which are widely used.

Widely used underlying models in credit risk

  • Traditional approach – There are many sites and surveys which determine the potential of risk in different sectors. Agencies like S&P, Moody, etc. determine the level of credit risk in different sectors such as mortgage loans, industrial loans, education loans, etc. financial institutions use this data and view the potential of risk according to them only. There is no specialized analytics conducted at the workplace. Such an approach is not bad because these agencies are highly credited and certified.
  • Rating based system – Its formula is the product of Probability of Default (PD), Exposure at Default (EAD) and Loss Given Default (LGD). It gives us the value of the expected loss. Expected loss = PD * EAD * LGD, Where, EAD is defined as the amount of credit given to any particular client. PD is defined as the low approval ratings and bad records which lead to the possibility of credit risk. For default companies, PD is 100%, LGD is the loss faced by the company/firm. A lot of analytical work is done in these types of approaches but they give more accurate results. Many financial institutions have dedicated workplaces and a highly valued job for credit risk analysts.
  • Advanced rating system – It has two types which are as follows:Calculated internally in the bank whereas EAD & LGD are provided by the bank supervisors who can also use various existing frameworks provided by BASEL to determine these aforementioned attributes. A lot of analysis is based on algorithms in this method.Advanced IRB approach in which all the attributes are calculated internally by the Foundation IRB (Internals Ratings Based) approach in which PD is  Bank but the work is mainly automated through good analytical models and frameworks.

The Five Fundamental C’s of Credit Risk

Five basic attributes are used across each model. These are the Credit history of the customer, Capital, Capacity of repayment, Collateral and Conditions of the loan. These C’s are manipulated into mathematical values and institutions find the potential/vulnerability of the credit risk from any particular customer. There are many accords and regulations such as BASEL III, IFRS 9, etc. which help in determining credit risk.

Conclusion

There are many types of fraud activities witnessed by financial institutions. To protect any such incidents, the institutions try to dig up about the client and conclude that if he is eligible for the loan or not. He will get the loan only if the approvers think that he/she can repay in due time.

This protects banks /investors from losses. There is a credit rating for each borrower which fluctuates based on his repayment. If he/she fails to repay, his credit ratings may go below and he/she may be denied a loan in the future. This article was all about widely used models for determining credit risk.