A credit analyst is a person employed by an organization to analyze the

credit worthiness A credit risk is risk of default on a debt that may arise from a borrower failing to make required payments. In the first resort, the risk is that of the lender and includes lost principal and interest, disruption to cash flows, and increased c ...

of customers and potential customers, and to assist in the ongoing

management Management (or managing) is the administration of an organization, whether it is a business, a nonprofit organization, or a government body. It is the art and science of managing resources of the business. Management includes the activities ...

and modeling of

credit risk A credit risk is risk of default on a debt that may arise from a borrower failing to make required payments. In the first resort, the risk is that of the lender and includes lost principal and interest, disruption to cash flows, and increased ...

thereafter. See and for discussion. In May 2015, the

U.S. Bureau of Labor Statistics The Bureau of Labor Statistics (BLS) is a unit of the United States Department of Labor. It is the principal fact-finding agency for the U.S. government in the broad field of labor economics and statistics and serves as a principal agency of t ...

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 bank Investment is the dedication of money to purchase of an asset to attain an increase in value over a period of time. Investment requires a sacrifice of some present asset, such as time, money, or effort. In finance, the purpose of investing is ...

s, "quants" are responsible for the analytics related to the risk management and

regulatory capital A capital requirement (also known as regulatory capital, capital adequacy or capital base) is the amount of capital a bank or other financial institution has to have as required by its financial regulator. This is usually expressed as a capital a ...

due to credit risk on the banking book (and to

pricing Pricing is the process whereby a business sets the price at which it will sell its products and services, and may be part of the business's marketing plan. In setting prices, the business will take into account the price at which it could acq ...

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 * Recommending credit limits based on company credit policies * Performing credit reviews of existing customers * Maintaining customer files with financial statements and bank reference information * Resolving credit issues * Monitoring risk trends on behalf of management and sales personnel

Education

Credit analysts typically C. Morah (2021
Analyzing a Career in Credit Analysis

investopedia Investopedia is a financial media website headquartered in New York City. Founded in 1999, Investopedia provides investment dictionaries, advice, reviews, ratings, and comparisons of financial products such as securities accounts. Investopedia ...

.com hold a business related bachelor's degree majoring in finance, in accounting, in business administration, or in economics. Depending on the role, some companies may require a

professional certification Professional certification, trade certification, or professional designation, often called simply ''certification'' or ''qualification'', is a designation earned by a person to assure qualification to perform a job or task. Not all certifications ...

such as the ''Credit Business Associate'' from the

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 ...

(NACM). Particularly for analysis involving the technical elements of EAD, PD and LGD modelling, some quantitative training, specifically in statistics and calculus, will be required.Staff (2019)
Credit Risk Measurement and Management
/ref> Often, a math or actuarial degree, and / or the

FRM FRM may refer to: * Financial Risk Manager * Fixed-rate mortgage * Category of frames * Fairmont Municipal Airport (Minnesota), in the United States * Fareham railway station, in England * Fathers' rights movement * Frankfurt Rhine-Main, Germany * ...

or PRM certification may be recommended. See also .

Professional Organizations

Credit analysts 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 Executive.

References

{{Reflist Credit management Finance occupations Financial analysts