ADVANCED CREDIT RISK ANALYSIS & MANAGEMENT

 

 

The book carries following endorsements

 

‘The author has been very thorough in his research and it is obvious that he has used his extensive experience as a practitioner in the way that he has addressed this important subject.’
—David Moleshead,  Former Managing Director, HSBC (ME)

‘It’s rare to find such a mix of theoretical and practical advice on credit risk in such an accessible format. This book will surely be useful for both lenders and borrowers.’
—James Mathew FCA CPA (USA), Managing Director, Crowe Horwath, Dubai

‘This is possibly the most comprehensive and rigorous work on credit risk. I particularly liked the approach, the simple, lucid, attractive style and the numerous interesting real-life examples. Ciby is a banker turned consultant and we have the benefit of his varied experience. Loaded with many powerful tools and techniques, this book will be a valuable guide to practitioners and academics alike. I'd advise anyone involved in credit to read carefully what Ciby has to say!’
—Binod Shanker, CFA, Managing Director, Genesis Institute

‘Credit Risk is the buzzword in the financial world these days and this book throws light on how to approach the intricacies of credit risk management effectively.’
—Davis Kallukaran FCA CFE (USA), Chief Executive Officer, Horwath MAK Corporation

‘Anyone who's ever wanted to understand credit risk surely can benefit from the practical information in this book.’
—Srinivas Arun ACA, AICWA, CPA (USA) ACMA (UK), Partner, Venture Consulting/Former CFO, Dubai Gold & Commodity Exchange

 

Buy the book : http://www.amazon.com/Advanced-Analysis-Management-Finance-ebook/dp/B00CJ9FVGS

ABOUT THE BOOK

The way corporate credit risk is analysed and studied in the book is unique.  The book provides a thorough treatment on Credit Risk and discusses obligor risk, portfolio risk, capital requirement, credit pricing and Basel accords. Amongst others, the book

 

•              Introduces the nature of credit risk and discusses advantages of credit (Chapter 1) and discusses the historical progress and challenges of credit risk analysis (chapter 2).

•              Explains the strategic role of credit risk culture and risk appetite statements (Chapter 3) and highlights the importance of separating credit risk (Chapter 4) variables.

•              Provides guidance on various external risks and formulation of effective early warning indicators (Chapter 5)

•              Discusses the impact of business cycles on the Industry as well as Industry profitability factors (Chapter 6). The chapter ends with a detailed case study.

•              Studies the entity level risks, including strategy and management risks. (Chapter 7). The chapter ends with a detailed case study.

•              Provides in-depth treatment of financial risk analysis (Chapter 8) with several worked out examples and a detailed case study. About 50 pages have been devoted to this important topic. 

•              Explains how to make integrated credit risk judgement and provides several credit risk mitigants for obligor risk (Chapter 9)

•              Shows how the obligor credit risk analysis is converted into risk grades and discusses how PD can drive credit decisions in a logical and mathematical manner (Chapter 10). Links Merton Model to the traditional accounting based credit risk analysis.

•              Provides in-depth analysis of the credit risks of two common situations - Project Finance and Working Capital Finance (Chapters 11 & 12). Besides worked out examples, both chapters end with detailed case studies.

•              Explains the benefits of credit portfolio analysis and the role of systematic and unsystematic risks and various credit portfolio risks (Chapters 13 & 14)

•              Shows the importance of Migration risk and how to construct Credit Loss distribution & estimate Economic Capital (Chapter 15). The chapter ends with a detailed case study.

•              Digs out the subtle issues in the Basel Accords and explains the role of external credit rating agencies (Chapter 16). Introduces Kelly’s formula in the context of credit risk management.

•              Provides various credit portfolio risk mitigants such as traditional and modern diversification, mathematical way of calculating sector limits, sale of credit assets and credit derivatives. Discusses the pros and cons of Credit Default Swaps (Chapter 19)

•              Explains importance of credit risk pricing, interest rate hedging and explains several pricing methods, including RAROC, EVA and NPV Pricing (Chapters 20 & 21).

•              Elaborates the role of security as return enhancer and credit risk mitigant. Also discusses various aspects of collateral and how systematic risks may impact collateral (Chapter 22)

•              Discusses the issue of structural subordination and importance of both financial and non-financial covenants and how to set covenants to manage the underlying risks. (Chapter 23)

•              Examines the reasons for credit crisis and links the credit to growth and how and when disconnect can happen leading to credit bubbles and subsequent credit and banking crisis (Chapter 24). The chapter ends with a case study. 

•              Explains 2008 Global Credit Crisis, led by the US Housing Sector, which in turn is traced to the subprime market bolstered by various credit market players and new credit risk linked products such as Credit Default Swaps.(Chapter 25). 

Whilst the above provides a glimpse of the contents of the book, the readers will find that the topics have a unique and practical treatment that will enable them to look at credit risk with clarity and better understanding.

The book has case studies adapted from real life, examples and exercises to ensure that the book is highly practical, topical, interesting and challenging. The book will be useful for a wide spectrum of academics and practitioners in credit risk and will include Bankers, Relationship Managers, Credit risk management professionals, Financial Advisors, Consulting professionals, Credit Analysts, Credit Managers, Bank Regulators, Bank Consultants, Treasury Managers. Finance Managers, Chief Finance Officers, Chief Executive Officers, Risk analysts, Investment bankers, Research and Ratings personnel, Portfolio Managers, Accountants, Auditors, Finance Professors, Finance students and anyone who is interested in the commercial and corporate credit and related products.

BUY at Amazon : http://www.amazon.com/Advanced-Analysis-Management-Finance-ebook/dp/B00CJ9FVGS


ABOUT THE AUTHOR

The book is authored by a veteran credit and finance professional with over 20 years' experience in lending to the business sector. University Rank holder and a recipient of ‘Letter of Appreciation’ from HSBC (2003) for best credit risk analysis, the author headed the corporate credit risk of Lloyds TSB Middle East where he enjoyed corporate credit sanction authority. He has also contributed articles on credit risk to various publications including Global Association of Risk Professionals, (GARP) USA.