This programme connects the credit approval circuit to the economics of the transaction, so that pricing decisions reflect the risk actually taken.
Participants compute risk adjusted return and economic value added, using internal ratings and observed loss rates, and compare economic capital with its regulatory counterpart. The cost of shareholder capital is discussed as the reference against which any transaction must be judged.
The final part extends the reasoning to portfolio management, concentration limits and risk transfer. Participants leave able to say whether a given deal creates or destroys value.
Who it is for
Credit, finance and risk staff assessing the profitability of lending transactions.