What You Will Learn
1. Introduction to Credit Risk
- the functions of the credit department
- policies and procedures
- the role of the Credit Committee
- Credit Committee minutes
- structures within credit

2. Lending
- understanding the risks of lending decisions
- the difference in approach between personal and corporate lending
- the difference in audit approach between the audits of personal and corporate lending
- planning the audit 
- making credit looking forward
- exercise: develop a planning memorandum for auditing the credit risk management function

3. Personal Credit Analysis
- credit evaluation
- credit scoring and the use of external information
- model valuation
- collateral valuation
- know your customer
- personal credit documentation
- planning the audit of personal credit
- exercise: develop an audit plan to address personal credit

4. Corporate Credit Analysis
- the nature of the risk
- balance sheets and financial analysis
- the use of ratings
- non- financial analysis
- the credit report
- the problems of corporate data
- corporate collateral and collateral management
- corporate credit documentation
- corporate ratings

5. Regulatory Requirements 
- the implications of the Basel Accord for credit audit
- the latest tools and techniques to measure, manage, and monitor credit risk
- auditing the loss given default
- auditing the exposure at default
- auditing likelihood of default
- auditing the capital calculation 
- exercise: develop a series of audit plans to address these issues

6.  Model Risk and the Credit Function
- sovereign credit ratings
- the credit risk of complex transactions
- credit arrears and arrears reporting
- auditing credit risk calculations
- exercise: develop an audit approach for risk modeling and complex transactions

7. Audit Techniques
- key challenges for credit risk and the board
- auditing credit risk sensitivity analysis
- auditing credit risk stress testing
- auditing credit risk scenario analysis
- exercise: consider of what level of stress that should be applied, and develop a series of audit plans to cover the subjects from this session