Credit Risk Assessment in Sovereign and Institutional Portfolios Training Course

Introduction
With increasing geopolitical uncertainties and shifting global economic trends, assessing credit risk in sovereign and institutional portfolios has become more critical than ever. The Credit Risk Assessment in Sovereign and Institutional Portfolios Training Course is designed to equip financial professionals, especially those in central banks, development institutions, and asset management firms, with the tools and methodologies needed to evaluate and manage credit risk exposure. The course delves into the frameworks used to assess creditworthiness, including sovereign credit analysis, institutional due diligence, and risk rating systems that align with global best practices.

This five-day practical training blends technical analysis, macroeconomic risk evaluation, and real-world case studies to help participants develop robust frameworks for credit risk assessment. It emphasizes the importance of both quantitative and qualitative tools, including economic indicators, political risk factors, and financial ratios. Participants will also gain exposure to regulatory expectations, risk mitigation strategies, and portfolio diversification principles to build resilient institutional investment strategies.

Duration

 5 days

Target Audience:

  • Central bank and government debt managers
  • Portfolio and investment analysts
  • Risk management professionals in DFIs and multilateral banks
  • Credit rating analysts and economists
  • Bank supervisors and financial sector regulators

Course Objectives:

  • Understand key concepts in sovereign and institutional credit risk
  • Apply macroeconomic and financial indicators in risk analysis
  • Use standardized and internal rating models for risk grading
  • Assess political, structural, and ESG risks in sovereign credit
  • Build risk mitigation strategies and decision-making frameworks

Course Modules

  1. Introduction to Credit Risk in Sovereign and Institutional Portfolios
  • Key principles of credit risk and its relevance to sovereign exposures
  • Differences between sovereign, sub-sovereign, and institutional risk
  • Credit risk in public sector lending vs. commercial portfolios
  • Historical trends and crisis-driven risk evolution
  • International frameworks for sovereign credit risk
  1. Sovereign Credit Risk Analysis Frameworks
  • Key macroeconomic indicators: GDP, fiscal balance, inflation, and debt ratios
  • External vulnerabilities and reserve adequacy
  • Political risk and institutional stability
  • Sovereign debt sustainability analysis (DSA)
  • IMF and World Bank frameworks for sovereign risk
  1. Institutional and Counterparty Risk Evaluation
  • Financial and operational due diligence for institutions
  • Credit assessment of public sector and development institutions
  • Key ratios: liquidity, solvency, profitability
  • Management quality and governance review
  • Risk of default and mitigation strategies
  1. Rating Methodologies and Internal Scoring Systems
  • Overview of rating agency approaches (Moody’s, S&P, Fitch)
  • Internal rating systems: scorecards, expert judgment, hybrid models
  • Credit grading scales and default probabilities
  • Calibration and validation of risk models
  • Regulatory and supervisory use of credit ratings
  1. Stress Testing and Scenario Analysis for Credit Portfolios
  • Identifying key stress scenarios for sovereign and institutional risk
  • Macro-financial linkages and shocks
  • Credit risk modeling under stressed conditions
  • Tail risk and sensitivity analysis
  • Policy and capital planning implications
  1. ESG and Political Risk Integration in Credit Analysis
  • Understanding ESG criteria in sovereign credit assessment
  • Impact of climate risk and social indicators on creditworthiness
  • Political risk measurement tools and indices
  • Integrating non-financial data into risk models
  • Transparency, governance, and sustainability indicators
  1. Risk Mitigation and Credit Enhancement Tools
  • Use of guarantees and insurance products
  • Covenant structuring and collateral frameworks
  • Portfolio diversification and exposure limits
  • Restructuring distressed sovereign debt
  • Role of multilateral support and credit enhancements
  1. Case Studies and Applied Credit Risk Assessment
  • Sovereign default episodes and lessons learned
  • Country credit analysis exercises and peer reviews
  • Institutional portfolio evaluation simulations
  • Developing credit memos and investment decisions
  • Role-playing credit committees and rating approvals

CERTIFICATION

  • Upon successful completion of this training, participants will be issued with Macskills Training and Development Institute Certificate

TRAINING VENUE

  • Training will be held at Macskills Training Centre. We also tailor make the training upon request at different locations across the world.

AIRPORT PICK UP AND ACCOMMODATION

  • Airport pick up and accommodation is arranged upon request

TERMS OF PAYMENT

Payment should be made to Macskills Development Institute bank account before the start of the training and receipts sent to info@macskillsdevelopment.com

 

 

Credit Risk Assessment In Sovereign And Institutional Portfolios Training Course in South Africa
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