The increasing number of regulations and the growing sophistication of new financial products and instruments, such as credit derivatives, have led to financial institutions sleepwalking into complex environments of silo-based processes and risk systems. Furthermore, the recent credit crisis, coupled with high profile operational and business losses have pushed governance, risk and compliance further up the agenda for many boards. The traditional silo-based ‘box-ticking’ approach to risk management is no longer valid. (Chartis Research Ltd 2008)

Financial institutions in India have started implementing the core of their Basel II systems and processes since March 2008. Some have even started to looking into shifting their attention to opportunities for reducing cost and complexity. The credit risk still claims the largest share of the regulatory requirement under Basel II. This is not surprising since exposure to credit risk continues to be the leading source of problems in banks. The US sub-prime crisis is one of the most recent examples of the inadequate credit risk assessment.  According Mr V Leeladhar, Deputy Governor of RBI, the advent of advanced approaches for credit risk in India under Basel II Framework in the days to come, could be expected to provide an impetus for adopting more sophisticated credit risk management techniques in banks.

India has seen significant improvements in the ability to manage risks. Lenders have also tried to hedge credit risk by diversifying their portfolios. Nevertheless, risk management is still an area, which is developing in India.  One of the popular steps taken to diversify and mitigate the credit risk is through securitisation. In India, rapid securitisation growth has been based on consumer loans reflecting investor’s familiarity with the underlying assets and the relatively short tenor of securitised issues. In 2006, and consequent to the securitisation guidelines issued by the RBI in February, various originators slowed their securitisation activity.

Credit Risk Management seeks to explore what is driving the market and where the future opportunities lie. This event aims to address the current situation, key drivers, structural issues; latest developments & updates in best practices in credit risk management. This event will provide you with strategic information to take control of managing capital at risk rather than be subject to the swings of the conventional market.

This event is endorsed and accredited by the International Society of FinancialProfessionals (ISOFP). ISOFP members will receive 12 CPD units for full attendance of the event.