UNDERSTANDING AND ASSIGNING FARM CREDIT RISK RATINGS

Course Length

2 hours

Course Description

In anticipation of regulatory changes pursuant to Basel II Capital Accord, Farm Credit System associations designed and implemented a new two-dimensional risk rating model. This course is intended to transfer the new risk rating knowledge to loan officers, credit analysts, and other credit professionals associated with lending and loan servicing responsibilities. With effective training, management will have confidence that the risk ratings are being properly assigned. The foundation for competitive loan pricing and the establishment of allowance for loan losses and economic capital is contained within the assigned ratings.

Course Topics

• Farm Credit System Risk Rating – Then and Now
• The Two-Dimensional Risk Rating Model
• Probability of Default (Borrower) Rating
• Loss Given Default (Loan) Rating
• Apply What You Know
• Assessment

In this course, you will learn about

• History of loan classifications
• Probability of Default: definition, ratings & criteria
• Loss Given Default: definition, ratings & criteria
• Conditions & covenants
• Rating assignments

Course Features

• Global navigation
• Audio narration and read narration
• Real-life case studies and scenarios
• Gaming interactions
• “Now try this” and “Apply what you know” exercises
• Glossary
• Scored and tracked assessments

Pricing Options

Contact your Adayana Business Development Representative for pricing information.