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
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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.