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Learning path

Credit Risk Analyst learning path: everything to study, topic by topic

Comprehensive credit risk assessment covering credit fundamentals, financial spreading, scoring models, loan structuring, portfolio risk management, regulatory capital, and advanced credit risk topics.

Short answer

To learn Credit Risk Analyst, work through 7 modules and 20 topics in the order they build on each other. It starts with Credit Fundamentals, then moves on to Financial Spreading & Analysis and Credit Scoring & Rating. Use the map as a checklist, or measure your level and study only what is missing.

7
modules
20
topics
50
min to assess

What you will study

Topics are grouped by module. Open one to see its objectives and key concepts.

1 · Credit Fundamentals3 topics
  • Credit Principles

    Foundations of credit risk: default risk, credit exposure, expected vs unexpected loss, and the risk-return trade-off in lending

    Objectives

    • Explain the components of expected loss (PD x LGD x EAD) and their role in credit pricing
    • Distinguish expected from unexpected loss and relate each to provisioning vs capital

    Key concepts

    • default risk
    • credit exposure
    • expected loss
    • unexpected loss
    • risk-return trade-off
    • credit risk appetite
  • Five Cs of Credit

    Character, Capacity, Capital, Collateral, and Conditions — the qualitative and quantitative framework for credit decisions

    Objectives

    • Apply the five Cs framework to evaluate a borrower's creditworthiness
    • Write a credit memo that weighs all five dimensions with supporting evidence

    Key concepts

    • character
    • capacity
    • capital
    • collateral
    • conditions
    • credit memo
  • Credit Products & Structures

    Revolving lines, term loans, letters of credit, trade finance, project finance structures, and their risk profiles

    Objectives

    • Compare risk profiles of revolving credit, term loans, and letters of credit
    • Match a borrower's needs to the appropriate credit product structure

    Key concepts

    • revolving credit
    • term loan
    • letter of credit
    • trade finance
    • project finance
    • amortization schedule
2 · Financial Spreading & Analysis3 topics
  • Financial Spreading

    Standardizing borrower financials into uniform format: reclassification, normalization, and trend identification for credit analysis

    Objectives

    • Spread a borrower's financials into standardized format with proper reclassifications
    • Identify non-recurring items and normalize EBITDA for credit analysis

    Key concepts

    • financial spreading
    • normalization
    • reclassification
    • common-size analysis
    • trend analysis
    • adjusted EBITDA
  • Cash Flow Analysis for Credit

    Analyzing borrower cash flows for debt repayment capacity: operating cash flow, free cash flow, and cash flow adequacy ratios

    Objectives

    • Assess a borrower's ability to service debt from operating cash flows
    • Identify red flags in cash flow quality that signal repayment risk

    Key concepts

    • operating cash flow
    • free cash flow
    • cash flow adequacy
    • debt service capacity
    • cash conversion cycle
    • quality of earnings
  • Collateral Valuation

    Assessing collateral quality: appraisal methods, advance rates, collateral monitoring, and loan-to-value analysis

    Objectives

    • Determine appropriate advance rates for different collateral types
    • Evaluate collateral coverage under normal and stressed liquidation scenarios

    Key concepts

    • loan-to-value
    • advance rate
    • collateral monitoring
    • appraisal methods
    • liquidation value
    • forced-sale discount
3 · Credit Scoring & Rating3 topics
  • Internal Rating Systems

    Designing and calibrating internal credit rating scales: obligor ratings, facility ratings, and mapping to external scales

    Objectives

    • Design an internal rating scale and map it to external agency equivalents
    • Distinguish through-the-cycle from point-in-time rating philosophies

    Key concepts

    • obligor rating
    • facility rating
    • rating scale calibration
    • external mapping
    • through-the-cycle
    • point-in-time
  • Probability of Default Modeling

    Statistical PD estimation: logistic regression, scorecard development, model validation, and discriminatory power metrics

    Objectives

    • Explain the key steps in building a PD scorecard from data preparation to validation
    • Interpret model performance metrics (Gini, KS, AUC) and assess discriminatory power

    Key concepts

    • probability of default
    • logistic regression
    • scorecard
    • Gini coefficient
    • KS statistic
    • ROC curve
    • model validation
  • Rating Migration Analysis

    Transition matrices, rating drift, cohort analysis, and early warning indicators for credit deterioration

    Objectives

    • Construct and interpret a rating transition matrix from portfolio data
    • Identify early warning signals of rating migration and design monitoring triggers

    Key concepts

    • transition matrix
    • migration rate
    • rating drift
    • cohort analysis
    • absorbing state
    • early warning indicators
4 · Loan Structuring3 topics
  • Term Sheet Design

    Structuring credit facilities: pricing, tenor, amortization, security package, and conditions precedent

    Objectives

    • Design a term sheet that balances borrower needs with lender protections
    • Justify pricing, tenor, and amortization decisions based on borrower risk profile

    Key concepts

    • term sheet
    • pricing grid
    • tenor
    • amortization profile
    • security package
    • conditions precedent
    • representations and warranties
  • Covenant Design & Monitoring

    Financial and non-financial covenants: maintenance vs incurrence, headroom calibration, and waiver/amendment processes

    Objectives

    • Design covenant packages with appropriate headroom for different credit profiles
    • Evaluate the trade-offs between maintenance and incurrence covenants

    Key concepts

    • maintenance covenant
    • incurrence covenant
    • covenant headroom
    • covenant lite
    • waiver
    • amendment
    • cure rights
  • DSCR & Interest Coverage Analysis

    Debt service coverage ratio, interest coverage ratio, fixed charge coverage, and their role in credit structuring and monitoring

    Objectives

    • Calculate DSCR and ICR under base, stress, and downside scenarios
    • Set appropriate coverage ratio thresholds for different industry and risk profiles

    Key concepts

    • DSCR
    • ICR
    • fixed charge coverage
    • debt service
    • coverage ratio thresholds
    • sensitivity analysis
5 · Portfolio Credit Risk3 topics
  • Concentration Risk Management

    Single-name, sector, geographic, and product concentration limits, Herfindahl index, and diversification strategies

    Objectives

    • Measure portfolio concentration using HHI and single-name exposure metrics
    • Design concentration limit frameworks that balance growth with risk appetite

    Key concepts

    • single-name limit
    • sector concentration
    • geographic concentration
    • Herfindahl index
    • granularity adjustment
    • diversification benefit
  • LGD & EAD Estimation

    Loss given default modeling: workout LGD, market LGD, collateral haircuts, and exposure at default estimation for credit facilities

    Objectives

    • Estimate LGD using workout and market-based approaches
    • Calculate EAD for revolving facilities using credit conversion factors

    Key concepts

    • LGD
    • EAD
    • workout LGD
    • market LGD
    • credit conversion factor
    • collateral haircut
    • recovery rate
    • cure rate
  • Vintage Analysis

    Cohort-based portfolio performance tracking: vintage curves, delinquency roll rates, loss emergence patterns, and underwriting quality assessment

    Objectives

    • Construct vintage curves and interpret cohort-level portfolio performance
    • Identify deteriorating underwriting standards from vintage analysis

    Key concepts

    • vintage curve
    • roll rate
    • delinquency bucket
    • loss emergence period
    • seasoning
    • underwriting quality
6 · Regulatory Capital2 topics
  • Basel Framework & RWA

    Basel III/IV risk-weighted asset calculation: standardized approach, IRB approach, CET1 requirements, and capital buffers

    Objectives

    • Calculate RWA under both standardized and IRB approaches for a loan portfolio
    • Explain the impact of Basel IV output floors on IRB capital requirements

    Key concepts

    • RWA
    • CET1
    • standardized approach
    • IRB foundation
    • IRB advanced
    • capital buffer
    • output floor
    • leverage ratio
  • CECL & Expected Credit Loss

    Current expected credit loss provisioning under CECL/IFRS 9: lifetime ECL, staging, forward-looking scenarios, and macroeconomic overlays

    Objectives

    • Calculate ECL provisions under CECL using PD, LGD, and EAD term structures
    • Design forward-looking scenario weights and macroeconomic overlays for ECL models

    Key concepts

    • CECL
    • IFRS 9
    • lifetime ECL
    • 12-month ECL
    • staging criteria
    • forward-looking adjustment
    • macroeconomic overlay
7 · Expert Credit Risk3 topics
  • Credit Stress Testing

    Portfolio-level stress testing: macroeconomic scenarios, sensitivity analysis, reverse stress tests, and CCAR/DFAST frameworks

    Objectives

    • Design a credit stress testing framework linking macro scenarios to portfolio losses
    • Perform a reverse stress test to identify scenarios that breach capital thresholds

    Key concepts

    • CCAR
    • DFAST
    • macroeconomic scenario
    • sensitivity analysis
    • reverse stress test
    • capital planning
    • pre-provision net revenue
  • Credit Derivatives & Transfer

    Credit default swaps, CLOs, synthetic securitization, and credit risk transfer mechanisms for portfolio optimization

    Objectives

    • Evaluate CDS pricing relative to credit spreads and assess basis risk
    • Design a credit risk transfer strategy using CLO or synthetic securitization

    Key concepts

    • CDS
    • CLO
    • synthetic securitization
    • credit risk transfer
    • tranching
    • credit-linked note
    • counterparty risk
  • Workout & Restructuring

    Managing distressed credits: forbearance, debt restructuring, TDR classification, recovery maximization, and workout strategies

    Objectives

    • Develop a workout strategy that maximizes recovery while managing legal and reputational risk
    • Compare restructuring alternatives (forbearance, amend-extend, debt-equity swap) and recommend the optimal approach

    Key concepts

    • forbearance
    • troubled debt restructuring
    • debt-for-equity swap
    • amend and extend
    • liquidation analysis
    • recovery waterfall
    • DIP financing

Levels: Junior, Mid, Senior, and Expert

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Frequently asked questions

Where should I start studying Credit Risk Analyst?

Start with Credit Fundamentals: Credit Principles, Five Cs of Credit, and Credit Products & Structures. The map orders topics by what they depend on, so each one prepares the next.

How long does a full Credit Risk Analyst assessment take?

A full assessment of this path takes about 50 minutes. Study time depends on where you start; a diagnostic shows which topics you can skip.

Do I need an account to use this page?

No. The map, objectives and key concepts are open. You only need an account to be measured, get your gap by topic and receive a plan.