Fundamentals of Credit Risk Management – Quiz 09

Last Updated: June 2024

Table of Contents

Topics:

Chapter 6:
Understand the features of lending sectors.

• Special types of personal borrowers: executors, trustees
• Controlling borrowing
• Customer due diligence
• Credit scoring, internal ratings and credit information sharing and reference bureaus
• General principles of credit reporting.
• Credit Information – sources and uses.
• Credit life cycles.
• Credit risk analysis.
• Why businesses borrow
• Small corporate lending
• Large corporate lending
• Special types of borrowers – farming, trade finance, acquisition finance
• An overview of the structured process of corporate lending
• Introduction to credit analysis – business risk, financial risk, structural risk – the 5 Cs of Credit, PEST & P5/P6, SWOT analysis, covenants/conditions
• Structured framework of credit analysis – the 6 components
• Assessing the borrower – valuing companies, ratio analysis, cash flow analysis, and the 7 drivers of cash flow
• Borrowing structure assessment – Standard Operating Procedures (SOPs)
• What makes Islamic Banking Different
• Principles of Islamic Banking

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