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Credit Analyst
A credit analyst is a person employed by an organization to analyze the credit worthiness of customers and potential customers, and to assist in the ongoing management and modeling of credit risk thereafter. See and for discussion. In May 2015, the U.S. Bureau of Labor Statistics reported 70,840 people employed as credit analysts. The salary for this position ranged from $40,250 to $134,080 with a mean average wage of $79,720. In investment banks, "quants" are responsible for the analytics related to the risk management and regulatory capital due to credit risk on the banking book (and to pricing and hedging credit derivatives). This position is distinct from the more commercially-focused credit management role described in this article. Job responsibilities Job responsibilities include the following: * Reviewing credit applications * Projecting sales * Evaluating credit risk * Analyzing financial data, statements and trends * Setting new customer credit limits * Recomme ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Credit Score
A credit score is a numerical expression based on a level analysis of a person's credit files, to represent the creditworthiness of an individual. A credit score is primarily based on a credit report, information typically sourced from credit bureaus. Lenders, such as banks and credit card companies, use credit scores to evaluate the potential risk posed by lending money to consumers and to mitigate losses due to bad debt. Lenders use credit scores to determine who qualifies for a loan, at what interest rate, and what credit limits. Lenders also use credit scores to determine which customers are likely to bring in the most revenue. Credit scoring is not limited to banks. Other organizations, such as mobile phone companies, insurance companies, landlords, and government departments employ the same techniques. Digital finance companies such as online lenders also use alternative data sources to calculate the creditworthiness of borrowers. By country Australia In Australia, cre ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Bachelor Of Accountancy
The Bachelor of Accountancy, also known as Bachelor of Accounting, is the principal academic degree in accountancy in several countries, and is often the only (undergraduate) degree recognised for subsequent practice as a professional accountant; see First professional degree. It is abbreviated as B.Acy., B.Acc., or B. Accty.. It is also sometimes titled Bachelor of Accounting Science (B.Acc.Sci.) or "Baccalaureus Computationis" (B.Compt.). The B.Acy. is extremely specialized: the curriculum requires study sufficient for professional practice (often at the major-level) in financial accounting, management accounting, auditing, and taxation. The curriculum also includes intermediate coursework in business law and economics, and general coverage of management theory, and business mathematics and business statistics. The degree is thus not to be confused with a B.B.A. in Accounting or B.Com. in Accounting, which are general business degrees with accounting as an area of conce ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Credit Manager
Credit management is the process of granting credit, setting the terms on which it is granted, recovering this credit when it is due, and ensuring compliance with company credit policy, among other credit related functions. The goal within a bank or company, in controlling credit, is to improve revenues and profit by facilitating sales and reducing financial risks. A credit manager is a person employed by an organization to manage the credit department and make decisions concerning credit limits, acceptable levels of risk, terms of payment and enforcement actions with their customers. This function is often combined with Accounts Receivable and Collections into one department of a company. The role of credit manager is variable in its scope and Credit Managers are responsible for: *Controlling bad debt exposure and expenses, through the direct management of credit terms on the company's ledgers. *Maintaining strong cash flows through efficient collections. The efficiency of cas ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Credit Assistant
A credit assistant is a person employed by an organization to provide support services to credit managers, credit analysts and other members of the credit department. This position is often entry level. Job responsibilities may include: * Collections * Gathering credit reports, financial histories and other data for credit analysts * Verifying credit reference information * Customer service Education and background Credit assistants often hold associate degrees and/or have experience as collectors or accounts receivables clerks. Employment The average salary for credit assistants in the United States is $36,216. Professional organizations Credit assistants in the United States can obtain memberships, continuing education and certification through NACM. Certification levels include Credit Business Associate, Certified Credit and Risk Analyst, Credit Business Fellow, Certified Credit Executive, Certified International Credit Professional and International Certified Credit Exec ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Professional Risk Manager
A professional is a member of a profession or any person who works in a specified professional activity. The term also describes the standards of education and training that prepare members of the profession with the particular knowledge and skills necessary to perform their specific role within that profession. In addition, most professionals are subject to strict codes of conduct, enshrining rigorous ethical and moral obligations. Professional standards of practice and ethics for a particular field are typically agreed upon and maintained through widely recognized professional associations, such as the IEEE. Some definitions of "professional" limit this term to those professions that serve some important aspect of public interest and the general good of society.Sullivan, William M. (2nd ed. 2005). ''Work and Integrity: The Crisis and Promise of Professionalism in America''. Jossey Bass.Gardner, Howard and Shulman, Lee S., The Professions in America Today: Crucial but Fragile. Da ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Financial Risk Manager
Global Association of Risk Professionals (GARP) is a not-for-profit organization and a membership association for risk managers. Its services include setting standards, training, education, industry networking, and promoting risk management practices. Founded in 1996 and headquartered in Jersey City, New Jersey, with additional offices in London, Washington, D.C., Beijing, and Hong Kong. GARP offers several foundational and certificate programs, the best known of which is the ''Financial Risk Manager (FRM)'' certification. GARP also runs initiatives such as thGARP Risk Institute (GRI)anGARP Benchmarking Initiative (GBI)for research and thought leadership efforts within the risk purview. History GARP was founded in 1996 by Marc Lore and Lev Borodovsky, two risk managers. They had been meeting once a week at a New York pub to talk about their chosen field with other risk colleagues and decided that a more formal organization would benefit other risk professionals. About six months ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Business Mathematics
Business mathematics are mathematics used by commercial enterprises to record and manage business operations. Commercial organizations use mathematics in accounting, inventory management, marketing, sales forecasting, and financial analysis. J. Olivier (2021)Business Math: A Step-by-Step Handbook Lyryx Learning (open textbook) Mathematics typically used in commerce includes elementary arithmetic, elementary algebra, statistics and probability. For some management problems, more advanced mathematics - calculus, matrix algebra, and linear programming - may be applied. High school ''Business mathematics,'' sometimes called ''commercial math'' or ''consumer math'', is a group of practical subjects used in commerce and everyday life. In schools, these subjects are often taught to students who are not planning a university education. In the United States, they are typically offered in high schools and in schools that grant associate's degrees; elsewhere they may be included under bu ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Loss Given Default
Loss given default or LGD is the share of an asset that is lost if a borrower defaults. It is a common parameter in risk models and also a parameter used in the calculation of economic capital, expected loss or regulatory capital under Basel II for a banking institution. This is an attribute of any exposure on bank's client. Exposure is the amount that one may lose in an investment. The LGD is closely linked to the expected loss, which is defined as the product of the LGD, the probability of default (PD) and the exposure at default (EAD). Definition LGD is the share of an asset that is lost when a borrower defaults. The ''recovery rate'' is defined as 1 minus the LGD, the share of an asset that is recovered when a borrower defaults. Loss given default is facility-specific because such losses are generally understood to be influenced by key transaction characteristics such as the presence of collateral and the degree of subordination. How to calculate LGD The LGD calculation i ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Probability Of Default
Probability of default (PD) is a financial term describing the likelihood of a default over a particular time horizon. It provides an estimate of the likelihood that a borrower will be unable to meet its debt obligations. PD is used in a variety of credit analyses and risk management frameworks. Under Basel II, it is a key parameter used in the calculation of economic capital or regulatory capital for a banking institution. PD is closely linked to the expected loss, which is defined as the product of the PD, the loss given default (LGD) and the exposure at default (EAD). Overview The probability of default is an estimate of the likelihood that the default event will occur. It applies to a particular assessment horizon, usually one year. Credit scores, such as FICO for consumers or bond ratings from S&P, Fitch or Moodys for corporations or governments, typically imply a certain probability of default. For group of obligors sharing similar credit risk characteristics such as ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Exposure At Default
Exposure at default or (EAD) is a parameter used in the calculation of economic capital or regulatory capital under Basel II for a banking institution. It can be defined as the gross exposure under a facility upon default of an obligor. Outside of Basel II, the concept is sometimes known as Credit Exposure (CE). It represents the immediate loss that the lender would suffer if the borrower (counterparty) fully defaults on its debt. The EAD is closely linked to the expected loss, which is defined as the product of the EAD, the probability of default (PD) and the loss given default (LGD). Definition In general, EAD is seen as an estimation of the extent to which a bank may be exposed to a counterparty in the event of, and at the time of, that counterparty’s default. EAD is equal to the current amount outstanding in case of fixed exposures such as term loans. For revolving exposures like lines of credit, EAD can be divided into drawn and undrawn commitments; typically the drawn ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Financial Modeling
Financial modeling is the task of building an abstract representation (a model) of a real world financial situation. This is a mathematical model designed to represent (a simplified version of) the performance of a financial asset or portfolio of a business, project, or any other investment. Typically, then, financial modeling is understood to mean an exercise in either asset pricing or corporate finance, of a quantitative nature. It is about translating a set of hypotheses about the behavior of markets or agents into numerical predictions. At the same time, "financial modeling" is a general term that means different things to different users; the reference usually relates either to accounting and corporate finance applications or to quantitative finance applications. While there has been some debate in the industry as to the nature of financial modeling—whether it is a tradecraft, such as welding, or a science—the task of financial modeling has been gaining acceptance and ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
National Association Of Credit Management
The National Association of Credit Management (NACM) is a non-profit organization based in Columbia, Maryland that promotes standards for the business-to-business credit profession. Founded in 1896, NACM has more than 15,000 members, primarily of credit and financial executives representing manufacturers, wholesalers, financial institutions, and service organizations. The trade association specializes in education for its membership, advancement of credit industry practices as well as business credit and accounts receivable management products and services. NACM has been active in its advocacy agenda for more than 100 years in Washington, DC, lobbying during the crafting of relevant legislation. Among its recent federal legislative priority issues were bankruptcy reform, the Federal Trade Commission’s “Red Flags Rules” and the 3% withholding tax issues. NACM’s education, training and professional certification programs include the Credit Business Associate (CBA), Credit B ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
