Diploma in Consumer Credit Risk Management

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Structure
The course commences with an interview. The course comprises of five units. The final day is an examination based on case studies (55% of the marks). Assessment is also based on course work, which includes: contribution to group discussions, course tests and calculation exercises. The pass mark is 65%.  

Accreditation
The Diploma is accredited by NCFE and has been awarded level 5 - a higher diploma. Candidates will be registered with the awarding body who provide external mediation providing quality assurance.

Who should attend?
The diploma is ideally suited to candidates who are from the retail banking and consumer credit industry. The majority of candidates will be qualified to degree level although this is not a prerequisite. To obtain the most out of the diploma we recommend a minimum of six month's relevant work experience.

Interview
After registration, we interview candidates. the objective of this is to introduce the course, process and discuss objectives. Candidates applying for exemptions will also be interviewed to ensure that they have the knowledge to justify exemption.

Exemptions
A delegate may obtain an exemption to a maximum number of two units. For example, if a delegate has attended a Credit Academy course in the prior two years, it is likely that this will count as an exemption for a relevant unit. For further details please contact us.  

Missed units
 Candidates unable to attend a unit, may defer to a later date.

Feedback
Candidates will be provided with formal feedback after completion of a unit (including the case study). Feedback is also available upon request.

Price        
The fee for the intensive diploma is £2,400 plus VAT. For full details including reductions for exemptions, click here.

Diploma in Consumer Credit Risk Management (Level 5)


Here is a summary of the subjects covered. For detail of each unit's learning points, click on the "detail" links below. 

Understanding Credit Risk Management

  • The Credit Cycle
  • The risk reward trade-off
  • Setting credit policies
  • Odds
  • Credit quality metrics
  • Scoring vs. underwriting
  • Application vs. behavioural scoring
  • Scorecard development process
  • Marketing's impact on quality
  • Adverse selection
  • The 3C's of underwriting
  • Rules of investigation
  • Application fraud
  • Transaction fraud
  • Fraud systems and principles
  • The role of collections
  • Collections process
  • Collections challenges
  • Dynamic delinquency
  • Programme control

      >detail

Credit Analytics

  • What is analysis ?
  • An analytical process
  • Insight vs. prediction
  • Trade-offs and profitability
  • Errors and variation
  • z- test
  • Confidence in predictions
  • Sample size
  • Champion/challenger
  • Design of Experiments
  • Testing for significance
  • T-test for differences
  • Discrete data analysis
  • Chi-squared
  • Contingency Tables
  • Information Value
  • KS test
  • Gini coefficient
  • ROC
  • Component analysis

     >detail

Credit Scoring: Principles and Monitoring

  • Setting a cut-off
  • Break-even analysis
  • Risk pools
  • The impact of profile shifts
  • Types of shift
  • Stability Index
  • Selecting characteristics
  • Grouping
  • Identifying and dealing with problem variables
  • What makes a good scorecard ?
  • Swap sets
  • Reject inference techniques
  • Questions to ask developers
  • Why track scorecards ?
  • Modelling bad rate
  • Characteristic analysis
  • Scorecard misalignment
  • Why validate a scorecard ?
  • Hold out and parallel tests
  • testing model robustness

     >detail

 

Portfolio Management

  • Portfolio metrics
  • Expected loss (PD,EAD,LGD)
  • Using behavioural scoring
  • Issues to watch out for
  • Tracking Balance Index
  • Designing strategy tests
  • The principles of strategy testing
  • Strategy tracking
  • Using a Profit Index
  • Analyse portfolio problems
  • Types of delinquency issues
  • Alternative problem solving approaches
  • Forecasting credit performance
  • Stress testing
  • Profit modelling
  • Calculating relative profit
  • Credit experience in recessions
  • The over-indebted problem

     >detail

Collections Segmentation and Strategies

  • Why segment
  • Clusters and trees
  • The concept of triage
  • The concept of tilting strategies
  • Collections scoring
  • Issues and scorecard power
  • Principles of collections strategies
  • Why we test
  • Sample selection
  • Agent impact on performance
  • Cash collected vs. write-off
  • A balanced scorecard
  • Types of roll rate
  • Building Markov Chains
  • Forecasting with roll rates
  • Looking at cost of collection
  • Collections efficiency
  • Tracking performance
  • Testing the strategy score band
  • Promise to pay strategies
  • Action specific strategies
  • Balance recoverability
  • Customer centric collections

     >detail

With expert presenters, high quality course notes, a superb learning environment and the stimulus of a challenging case study-based exam at the end, the course gives a thorough insight into the practical issues related to credit risk management in the consumer credit environment.

What if your team can't attend our Diploma course dates and venues ?

If you are interested in our Diploma course but cannot spare your team for the dates and venues arranged, The Credit Academy offers a wide range of in-house training, tailored to your individual needs, including the complete Diploma Course In Credit Risk Management.