Postgraduate Course: Credit Risk Management (CMSE11122)
Course Outline
| School | Business School |
College | College of Arts, Humanities and Social Sciences |
| Credit level (Normal year taken) | SCQF Level 11 (Postgraduate) |
Availability | Not available to visiting students |
| SCQF Credits | 15 |
ECTS Credits | 7.5 |
| Summary | This course introduces students to theory and practice in credit risk management. Students will consider the application of credit scoring and the methods for credit scoring using scorecards. In particular, students will learn certain techniques required by a lender for effective loan management and for compliance with capital requirement regulations.
This course builds on students' knowledge gained in the core courses during Semester 1 of the programme, therefore complementing the other courses and minimising overlap of materials.
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| Course description |
This course builds upon core courses of the programmes. The course introduces basic concepts and techniques of risk assessment and risk management in consumer credit. The course demonstrates major forms of risk modelling which retail financial lenders experience. Credit risk is considerably topical given the difficulties throughout the world economies that were precipitated by excessive lending to high risk borrowers.
The teaching objectives are to teach the students the theoretical background and practical implementation of risk management in retail credit risk. The course will teach the application of credit scoring and the methods for credit scoring using scorecards.
This course introduces students to the theory and practice in credit risk management. Students will consider the application of credit scoring and the methods for credit scoring using scorecards. In particular, students will learn certain techniques required by a lender for effective loan management and for compliance with capital requirement regulations.
This course relies on the knowledge students gain in the core courses during Semester 1 of their programme, therefore complementing the other courses and minimising the overlap of material.
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Entry Requirements (not applicable to Visiting Students)
| Pre-requisites |
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Co-requisites | |
| Prohibited Combinations | |
Other requirements | Students enrolling on this course should have a knowledge of SAS software, and have taken a course in Statistics. |
Course Delivery Information
| Not being delivered |
Learning Outcomes
On completion of this course, the student will be able to:
- Estimate, implement and evaluate credit risk assessment methods for individual loans to corporate and retail borrowers;
- Understand and critically discuss methods of monitoring and tracking model performance;
- Understand and critically discuss methods of measuring and assessing the credit risk of portfolios of loans.
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Reading List
Main:
Thomas, L., Edelman, D. and Crook, J. (2017) Credit Scoring and its Applications. SIAM: Philadelphia.
Additional:
Anderson, R. (2007) The Credit Scoring Toolkit. Oxford University Press: Oxford.
Baesens, B. (2014) Analytics in a big data world : the essential guide to data science and its application. Hoboken, New Jersey : Wiley
Crook, J., Edelman, D. and Thomas, L. (2007) "Recent Developments in Consumer Risk Assessment" European Journal of Operational Research. Vol. 183, No. 3, pp.1447-1465.
Mays, E. (2001) Handbook of Credit Scoring. Glenlake: London.
Siddiqi, N. (2006) Credit risk scorecards : developing and implementing intelligent credit scoring. Wiley: New Jersey.
Thomas, L. (2009) Consumer Credit Models. Oxford University Press: Oxford.
Thomas, L., Edelman, D. and Crook, J. (2004) Readings in Credit Scoring. Oxford University Press: Oxford.
Van Gestel, T. and Baesens, B. (2009) Credit Risk Management. Oxford University Press: Oxford. |
Additional Information
| Graduate Attributes and Skills |
Communication, ICT, and Numeracy Skills
After completing this course, students should be able to:
Convey meaning and message through a wide range of communication tools, including digital technology and social media; to understand how to use these tools to communicate in ways that sustain positive and responsible relationships.
Critically evaluate and present digital and other sources, research methods, data and information; discern their limitations, accuracy, validity, reliability and suitability; and apply responsibly in a wide variety of organisational contexts.
Knowledge and Understanding
After completing this course, students should be able to:
Demonstrate a thorough knowledge and understanding of contemporary organisational disciplines; comprehend the role of business within the contemporary world; and critically evaluate and synthesise primary
and secondary research and sources of evidence in order to make, and present, well informed and transparent organisation-related decisions, which have a positive global impact. |
| Keywords | Not entered |
Contacts
| Course organiser | Dr Galina Andreeva
Tel: (0131 6)51 3293
Email: Galina.Andreeva@ed.ac.uk |
Course secretary | Miss Aoife McDonald
Tel: (0131 6)50 8074
Email: Aoife.McDonald@ed.ac.uk |
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