APPLIES TO ACADEMIC YEAR 2014/2015
FIN 3511 Credit Risk Assessments
Responsible for the course
Department of Accounting - Auditing and Law
According to study plan
Language of instruction
The course covers issues related to credit risk assessments of private businesses. The focus of the course is the ability to serve debt by analyzing future net cash flows and capital requirements. Moreover best practices will be addressed.
Students must be able to understand important concepts within the credit risks analysis discipline:
- Have a good understanding of the concept credit risk analysis and risks related to private business exposures.
- Understand the basic requirements for a private business to survive.
- Understand how to use information from financial statements in a credit risk analysis.
Students must be able to evaluate the credit risk by the use of relevant models and tools.
- Be able to correct and group financial information to be used in a credit risk analysis.
- Be able to practice models to prepare a basis for decisions.
- Analyze the credit risk and present it for the decision maker.
Students must be capable of demonstrating an ability to critically reflect upon their own role and work.
- Understand the importance of analyzing the credit risk.
- Understand the role of a credit risk analyst.
- Basic knowledge of best practices.
BØK 3411 Finance and Managerial Accounting I or equivalent.
Eklund, Trond og Knut Knutsen. 2011. Regnskapsanalyse : aktiv bruk av regnskapet. 8. utg. Gyldendal akademisk
Basel Committee on Banking Supervision. 2000. Principles for the management of credit risk. Lenke til pdf på åpen web. http://www.bis.org/publ/bcbs75.pdf
- Correcting and assessing financial data and other information prior to analyzing
- Ratio analysis
- Cash flow analysis
- Future capital requirement
- Required future net internally generated cash flow
- Risk classification and models for predicting bankruptcy
- Credit risk and portfolio analysis
- Loan review
- Best practices
No specified computer-based tools are required.
Learning process and workload
The course is conducted with 36 hours of lectures and 9 hours of exercises. Extensive exercises are of great importance and part of lectures will be used to review assignments. Students are expected to be prepared for the lectures through literature and assignments.
After the deadline feedback will be given by the lecturer. Students must get their assignment approved in order so sit for the final exam.
Recommended use of hours:
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|Preparations for the lectures||
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In order to sit for final exam students must hand in a mandatory assignment and get it approved by the lecturer.
A three hour individual written exam concludes the course.
FIN 35111 Written examination, counts 100 % towards the final grade in FIN 3511 Credit Risk Assessments, 7,5 credits.
Examination support materials
All support materials are allowed.
Examination support materials at written examiniations are explained under examination information in the student portal @BI. Please note use of calculator and dictionary. https://at.bi.no/EN/Pages/Exa_Hjelpemidler-til-eksamen.aspx
Re-sit examination is offered every term.