Auditing Credit Risk

Credit risk is a key risk for financial services organizations and, for a good number of organizations, maybe the most critical risk. Regulators and regulatory supervisors are focused on this risk, emphasizing the necessity of having accurate models that can measure the capital impact of credit activities, the risk of leveraged finance, and the great importance of counterparty risk. New requirements and supervisors’ expanded expectations are giving internal audit a more relevant and active role in the assessment of credit risk. In addition, the organization’s board of directors has responsibility for credit risk oversight and governance, and internal audit should provide the board with independent assurance regarding the organization’s credit risk management efforts.

This course provides internal auditors with a baseline skill set necessary to test and evaluate the effectiveness of the organization’s credit risk management framework and processes.

products.sku: 1010.LMS.LM01.0070.01.01
$109.00
products.price.withdiscount: $109.00
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products.tierprices.price$50.00

Who will benefit from this course?

This course is intended to provide participants with the essential knowledge and skill set to test and evaluate the effectiveness of the organization’s credit risk processes. This course will benefit internal auditors desiring an overview of the importance of credit risk, credit risk governance, and risk management processes surrounding credit risk.

Course Objectives

  • Express the importance of credit risk in the financial services industry.
  • Summarize the regulatory environment and requirements related to credit risk.
  • Recognize the key elements of credit risk governance and risk management processes surrounding credit risk.
  • Describe the nature and basis of measurement of the default probability.
  • Evaluate the role of internal audit in credit risk business processes and operations.
  • Apply International Professional Practices Framework (IPPF) and risk-based internal audit techniques to assess and audit credit risk.
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Assessing Fraud Risk

This course equips internal auditors and fraud risk practitioners with a solid understanding of local and global effects of fraud in organizations. As fraud risks and fraudulent activities continue to play a role in an organization’s overall financial and reputational stability, the recognition of current trends in fraudulent acts will grant internal auditors the advantage of fostering detective and preventive measures to safeguard the integrity of a business, its shareholders, products, services, and workforce. 

In its 2020 Report to the Nations, the Association of Certified Fraud Examiners (ACFE) calculated that businesses lost an estimated $3.6 billion in fraud cases globally, which stresses the necessity to modernize and standardize reporting pathways to thwart risks, and fraud intents. By incorporating The IIA Standards into risk and fraud assessments, the process of maintaining a cohesive and transparent risk management engagement is streamlined for the continuation of businesses and their operations.

$89.00

Liquidity Risk Management

This course will describe internal audit's role in the world of liquidity risk management. Liquidity is a measure of the ability and ease with which assets can be converted to cash. To remain viable, a financial institution must have enough liquid assets to meet its near-term obligations. Internal audit plays a vital role in ensuring compliance with the Basel III regulatory framework, which was adopted by the Federal Reserve to ensure adequate capital in the banking system.

This course helps learners to gain an understanding of Liquidity Risk Management (LRM), Basel III regulatory requirements, and the role of banking supervisors. It also provides details on the impacts of the Three Lines Model over the LRM framework and governance in financial institutions. Finally, the course describes various liquidity-specific aspects of an internal audit engagement, including audit planning and risk assessment.

$89.00

Auditing Model Risk Management

Organizations across various sectors of the economy recognize the benefit of utilizing mathematical models to validate decisions. With large amounts of data coming from a myriad of dynamic sources, organizations need to develop models to review, evaluate, validate, and transform data with the purpose of optimizing strategic forecasting and tactical actions.

This course provides an overview of model development, testing and validation, as well as practical applications of model risk management (MRM). It describes the important role of the three lines of defense in the MRM process and defines the internal audit activity’s responsibilities related to MRM. Additionally, this course identifies methods and processes internal auditors can use to review the design, implementation, and operation of their organization’s MRM framework.

$59.00

Auditing Market Risk

Market risk is a key risk for financial services organizations. Regulators and their supervisors focus on this risk, emphasizing the necessity of having accurate models that can measure the capital impact of market activities on the financial viability of the institution. Regulatory requirements and supervisors’ expanded expectations are giving internal audit a more relevant and active role in the assessment of market risk. In addition, an organization’s board has direct responsibility of market risk oversight and governance, so internal audit should provide it with independent assurance in conformance with the Standards.

This course provides internal auditors with a baseline skill-set necessary to test and evaluate the effectiveness of the organization’s market risk management framework and processes.

$129.00