Credit Risk Stress Testing Training Course

Introduction

Empower financial professionals to proactively manage credit risk and ensure portfolio resilience with our comprehensive Credit Risk Stress Testing Training Course. This program equips you with the essential knowledge and skills to develop and implement effective stress testing frameworks, design appropriate stress scenarios, and analyze the impact of adverse economic conditions on credit portfolios. Mastering credit risk stress testing is increasingly vital for institutions seeking to meet regulatory requirements, enhance risk management practices, and safeguard financial stability. Our credit stress testing training course offers in-depth guidance and practical applications for navigating the complexities of stress testing and mitigating potential losses.

This Credit Risk Stress Testing training course delves into key areas such as stress testing methodologies, scenario design, macroeconomic factors, regulatory requirements, and practical implementation. You will gain expertise in applying quantitative techniques, utilizing stress testing software, and interpreting results to inform decision-making. Whether you are a risk manager, credit analyst, or portfolio manager, this Credit Risk Stress Testing course will provide you with the tools and knowledge to confidently assess portfolio vulnerability, enhance risk management practices, and ensure the soundness of your institution.

Target Audience:

• Risk Managers
• Credit Analysts
• Portfolio Managers
• Quantitative Analysts

Course Objectives:

• Understand stress testing methodologies and best practices.
• Develop stress scenarios relevant to credit portfolios.
• Analyze the impact of macroeconomic factors on credit risk.
• Comply with regulatory requirements for stress testing.
• Implement practical stress testing
• Utilize stress testing software and tools.
• Interpret stress test results for decision-making.
• Enhance portfolio resilience through stress testing.

Duration

5 Days

Course content

Module 1: Stress Testing Methodologies

• Understanding stress testing methodologies and best practices.
• Exploring the evolution of stress testing.
• Understanding the different types of stress tests.
• Reviewing regulatory guidance on stress testing.
• Establishing a stress testing framework.

Module 2: Stress Scenario Design

• Developing stress scenarios relevant to credit portfolios.
• Understanding scenario development.
• Identifying key risk factors.
• Creating coherent stress narratives.
• Reverse stress testing.

Module 3: Macroeconomic Factors in Stress Testing

• Analyzing the impact of macroeconomic factors on credit risk.
• Understanding macroeconomic variables.
• Assessing the impact of economic shocks.
• Incorporating macroeconomic models.
• Using forward-looking scenarios.

Module 4: Regulatory Requirements for Stress Testing

• Complying with regulatory requirements for stress testing.
• Reviewing global regulatory frameworks.
• Understanding supervisory expectations.
• Addressing Pillar 2 requirements.
• Preparing for regulatory reviews.

Module 5: Implementing Stress Testing Frameworks

• Implementing practical stress testing
• Integrating stress testing into risk management.
• Establishing governance and controls.
• Documenting stress testing processes.
• Validating stress testing models.

Module 6: Stress Testing Tools and Software

• Utilizing stress testing software and tools.
• Exploring available software solutions.
• Evaluating model performance.
• Automating stress testing processes.
• Managing data for stress testing.

Module 7: Interpreting and Applying Stress Test Results

• Interpreting stress test results for decision-making.
• Analyzing the impact on capital and liquidity.
• Identifying vulnerabilities.
• Developing mitigation strategies.
• Communicating stress test outcomes.

Training Approach

This course will be delivered by our skilled trainers who have vast knowledge and experience as expert professionals in the fields. The course is taught in English and through a mix of theory, practical activities, group discussion and case studies. Course manuals and additional training materials will be provided to the participants upon completion of the training.

Tailor-Made Course

This course can also be tailor-made to meet organization requirement. For further inquiries, please contact us on: Email: info@skillsforafrica.org, training@skillsforafrica.org  Tel: +254 702 249 449

Training Venue

The training will be held at our Skills for Africa Training Institute Training Centre. We also offer training for a group at requested location all over the world. The course fee covers the course tuition, training materials, two break refreshments, and buffet lunch.

Visa application, travel expenses, airport transfers, dinners, accommodation, insurance, and other personal expenses are catered by the participant

Certification

Participants will be issued with Skills for Africa Training Institute certificate upon completion of this course.

Airport Pickup and Accommodation

Airport pickup and accommodation is arranged upon request. For booking contact our Training Coordinator through Email: info@skillsforafrica.org, training@skillsforafrica.org  Tel: +254 702 249 449

Terms of Payment: Unless otherwise agreed between the two parties’ payment of the course fee should be done 7 working days before commencement of the training.