Description

A focused course, tailored for you

Credit Risk Analysis for Client-Facing Analysts

Build the analytical toolkit that turns counterparty exposure data into credit memos your risk committee will approve on the first pass.

The credit memo came back. The counterparty exposure figure and the recommended limit are in conflict, and the methodology behind the original model walked out the door six months ago. You can reconstruct the output, but you cannot defend the assumptions. That is the gap this course closes.

$199 one-time

Tailored to your situation. Access within 24 hours. 30-day money-back.

Includes a hand-built implementation playbook delivered alongside course access, generated for your specific situation.

Why this course

Client and risk analysts at institutional banks operate in a specific bind: they face the client relationship and they own the risk output. When the risk committee challenges a recommendation, the defence has to be methodological, not just numerical. Most analysts learn the numbers but not the architecture underneath them. APRA's APS 112, the Basel III CRE framework, the counterparty credit risk rules under SA-CCR, the internal limit-setting logic that ties back to regulatory capital. Each piece is learnable. What is hard is building a personal analytical framework that connects them into a credit memo a senior risk manager cannot pick apart. This course teaches that framework, artefact by artefact.

What you walk away with

Build a counterparty exposure schedule that reconciles mark-to-market, potential future exposure, and credit limit in one defensible document.
Write credit memos that survive internal risk committee challenge by grounding every limit recommendation in a methodology the committee can audit.
Apply APS 112 and the Basel III CRE20 framework to set regulatory capital-aware credit limits for institutional clients.
Run a stress-test scenario on a client portfolio and translate the output into the risk narrative section of a credit memo.
Map SA-CCR counterparty credit risk rules onto an OTC derivatives client relationship and explain the capital treatment to the coverage banker.
Build a client-level limit framework that separates settlement exposure, pre-settlement exposure, and issuer risk into distinct line items.

The 12 modules

Module 1. How a Credit Memo Actually Gets Challenged

Before building anything, you need to understand exactly where risk committees push back. This module walks through the anatomy of a returned credit memo: the three questions a risk committee always asks, where the methodology gap typically sits, and how to read a committee's written feedback as a specification for what your next memo needs to contain. You will map your own recent memo against this framework and identify the single weakest section.

Module 2. Counterparty Exposure: The Three Numbers That Have to Reconcile

Mark-to-market exposure, potential future exposure, and the credit limit recommendation are three different calculations that must reconcile in the memo. This module builds each from first principles: the MTM calculation for a plain-vanilla OTC position, the add-on methodology under SA-CCR, and how the two feed into a credit limit that is both commercially defensible and capital-aware. You will produce a counterparty exposure schedule template you can reuse on any client file.

Module 3. APS 112 and What It Actually Requires of Your Credit Memo

APRA's APS 112 Capital Adequacy: Standardised Approach to Credit Risk sets the floor for how your bank capitalises counterparty exposures. This module translates the regulatory text into the specific items that must appear in a credit memo for a corporate or institutional counterparty. You will learn how risk weighting under APS 112 affects the credit limit number you can recommend, and how to document that link so the risk committee can follow the chain.

Module 4. Basel III CRE20: The Counterparty Credit Risk Framework

The CRE20 chapter of the Basel III framework defines the standardised approach to counterparty credit risk for derivatives and SFTs. This module covers the replacement cost calculation, the PFE add-on multiplier, and the netting and collateral recognition rules that reduce your capital requirement. You will build a worked CRE20 calculation for a representative OTC client position and annotate each line with the regulatory reference that supports it.

Module 5. Client Credit Limit Framework: Settlement, Pre-Settlement, and Issuer Risk

A single client credit limit is almost always the wrong structure. This module teaches how to decompose a client's aggregate limit into three separate risk buckets: settlement exposure (T+2 FX), pre-settlement exposure (OTC derivatives to maturity), and issuer risk (bonds and structured notes). Each bucket has different capital treatment and different business justification. You will design a three-column limit framework for a hypothetical client and write the methodology note that explains the split to the risk committee.

Module 6. Writing the Methodology Section of a Credit Memo

The methodology section is where most credit memos are weakest. It either repeats the risk committee's own policy back at them, or it makes analytical claims without showing the work. This module breaks the methodology section into four mandatory components: the exposure measurement approach, the limit-setting rationale, the regulatory capital link, and the monitoring trigger. You will rewrite a deliberately weak methodology section using the four-component structure.

Module 7. Stress Testing a Client Portfolio for the Memo Narrative

Risk committees increasingly require a stress scenario in credit memos for large or complex clients. This module covers how to run a stress test on a client's portfolio that is credible, proportionate, and quick enough to be done in the normal credit review cycle. You will learn to select the right stress scenario for the client's business (rate shock, credit spread widening, commodity price move), calculate the stressed exposure, and write the two-paragraph risk narrative that belongs in the memo.

Module 8. OTC Derivatives Clients and SA-CCR: Explaining Capital Treatment to Coverage

When a coverage banker asks why the credit limit on an OTC derivatives client is lower than on a comparable loan client, the answer is SA-CCR. This module gives you the explanation and the numbers: how SA-CCR's replacement cost and PFE add-on combine to produce a higher exposure-at-default than the notional, why netting agreements matter and how to confirm one is legally enforceable, and how to frame the capital cost conversation without losing the relationship.

Module 9. ASIC Reporting Obligations That Touch Your Credit File

Client and risk analysts at Australian banks need to know which ASIC obligations create documentation requirements on the credit file itself. This module covers the OTC derivatives reporting obligations under ASIC RG 251, how trade reporting data feeds into your counterparty exposure calculation, and what the credit file must contain to satisfy an ASIC review. You will build a credit file checklist that maps each ASIC documentation requirement to the corresponding section of the credit memo.

Module 10. Internal Limit Monitoring: Triggers, Breaches, and Escalation Memos

A credit memo is not a one-time document. It creates a limit that has to be monitored and an escalation obligation when that limit is breached. This module covers how to set monitoring triggers at 75% and 90% of limit, what an internal breach notification memo must contain, how to document a temporary limit excess in a way that satisfies both the risk committee and the audit trail, and how to write the limit review memo that follows a breach.

Module 11. Defending Your Recommendation in a Risk Committee Meeting

The credit memo gets you into the room. The verbal defence keeps the recommendation alive. This module covers the three most common challenges a risk committee will make to a credit recommendation (methodology challenge, comparator challenge, and limit quantum challenge), how to prepare a one-page pre-read that pre-empts each one, and how to answer a methodology question live without over-committing to a number you cannot defend. You will run a mock challenge on your own most recent recommendation.

Module 12. Building Your Own Credit Risk Methodology Document

The final module brings every artefact into a single methodology document: the counterparty exposure schedule, the three-column limit framework, the CRE20 calculation workbook, the stress-test narrative template, and the four-component credit memo structure. You will assemble these into a document you can present in a review cycle, use in a role interview, or hand to a coverage banker as the basis for a client discussion.

How this addresses your situation

Specific modules that map to what you said you are dealing with.

Risk committee sends back a credit memo with no clear explanation of why: Modules 1, 6, 11.

You need to set a credit limit for an OTC derivatives client and cannot reconcile the exposure calculation: Modules 2, 4, 8.

APRA or an internal audit review asks why the credit limit is set at this number: Modules 3, 5, 9.

A coverage banker is pushing back on a limit that the capital treatment requires: Modules 7, 8, 10.

What you get with this course

12 written modules in the Art of Service learning environment, self-paced.
Downloadable counterparty exposure schedule template (APS 112 and CRE20 mapped).
Downloadable three-column client limit framework (settlement, pre-settlement, issuer risk).
Downloadable credit memo structure with four-component methodology section.
Downloadable CRE20 calculation workbook with worked example.
Downloadable stress-test narrative template.
Downloadable ASIC RG 251 credit file documentation checklist.
Hand-built implementation playbook delivered alongside course access, tailored to your account mix and risk committee environment.

What you will have in hand by Day 1, Week 1, Month 1

Within 24 hours your account in the learning environment is provisioned and the tailored implementation playbook is delivered alongside it.

Before and after

Before

The credit memo is a document you produce under time pressure, using a methodology you inherited and cannot fully defend. When the risk committee challenges the limit, you rerun the numbers. When the model assumptions are questioned, you escalate to a specialist.

After

The credit memo is a document you own. You built the methodology, you can defend every number, and you can explain the regulatory capital treatment to a coverage banker or a risk committee without needing a specialist in the room.

What happens if you do not address this

Credit analysts who cannot defend their methodology under challenge stop getting their recommendations approved. The ones who can are the ones who get put on complex clients, asked to present to the risk committee directly, and promoted into risk management roles.

Who it is for

A client and risk analyst at an investment bank or diversified financial group, two to five years into the role, who is comfortable with financial modelling but has not yet built a coherent end-to-end credit risk methodology they can defend under challenge. They are accountable for client-level exposure recommendations and need the regulatory layer to be part of their own toolkit, not something they borrow from a specialist.

Who this is NOT for. Retail credit officers working volume-scoring models. Quantitative researchers building VaR frameworks from scratch. Compliance officers who need the regulatory text rather than the applied methodology.

How it arrives

Text-based course in the Art of Service learning environment, plus downloadable templates and worked examples for every module, plus the hand-built implementation playbook delivered alongside course access.

Time investment. Twelve modules. Each designed to be read and applied in one focused session. Most analysts complete the full course across two to three weeks while running their normal workload.

Why $199 is the right number

Internal training covers the bank's own methodology but not how to build your own. University risk courses cover theory without the credit memo artefacts. This course covers the applied methodology, the regulatory framework, and the specific documents you need to produce, in the context of an institutional client relationship at an investment-grade bank.

FAQ

Is this specific to Australian regulatory requirements?

The regulatory framework modules cover APRA APS 112 and ASIC RG 251 directly, as well as the global Basel III CRE20 framework that applies across all major markets. The methodology modules are applicable to any institutional banking context.

Does this cover equity or rates derivatives as well as FX?

The SA-CCR and CRE20 modules use examples from FX and rates OTC derivatives. The methodology is directly transferable to equity derivatives with minor adjustments to the add-on calculation, which is covered in the CRE20 module.

What if my bank uses an internal ratings-based approach rather than the standardised approach?

The credit memo structure, limit framework, and stress-test modules are methodology-agnostic. The APS 112 module covers the standardised approach, but the IRB treatment is noted as a parallel pathway at each relevant decision point.

30-day money-back guarantee. If after a week of working through the materials this is not what you needed, reply to the receipt email and a full refund is processed. No questions, no forms.

Within 24 hours your account in the learning environment is provisioned and the tailored implementation playbook is delivered alongside it.