munotes®
Sign in
Home / Syllabus / B.Com. (Investment Management) / TY BCom IM / Semester 5 / Credit Risk Management

B.Com. (Investment Management) Credit Risk Management Syllabus - Mumbai University

This is the TY BCom IM syllabus under NEP 2020, in force from the academic year 2026-27. The University still sets the earlier Choice Based papers alongside it for ATKT candidates, so check which scheme your exam form names before you revise.

Credit Risk Management Syllabus.pdf
Major elective · Semester 5 · TY BCom IM · 4 credits · 100 marks

Loading syllabus...

Syllabus for Credit Risk Management

Major elective · Semester 5 · TY BCom IM · 4 credits · 100 marks

Module I: Fundamentals of Credit Risk

  • Unit 1: Introduction to Credit Risk
  • Meaning and Nature of Credit Risk – Understanding default risk, exposure, and the role of credit risk in financial institutions.
  • Types of Credit Risk – Counterparty risk, concentration risk, settlement risk, sovereign risk.
  • Credit Risk vs. Other Financial Risks – Differentiating from market, liquidity, and operational risks.
  • Importance of Credit Risk Management – Role in financial stability, lending decisions, and portfolio management.
  • Unit 2: Credit Risk Environment and Principles
  • Credit Risk Governance – Policies, credit culture, risk appetite framework.
  • The 5 Cs of Credit – Character, Capacity, Capital, Collateral, Conditions with practical illustrations.
  • Credit Lifecycle – Origination, appraisal, sanction, monitoring, recovery.
  • Early Warning Signals of Credit Deterioration – Financial and non-financial indicators.

Module II: Credit Appraisal and Assessment Techniques

  • Unit 3: Financial Analysis for Credit Appraisal
  • Reading Financial Statements – Balance sheet, income statement, cash flow relevance in credit appraisal.
  • Ratio Analysis – Liquidity, leverage, profitability, coverage ratios.
  • Cash Flow and Fund Flow Analysis – Assessing debt repayment capacity.
  • Working Capital Assessment – Methods like Tandon norms, turnover method.
  • Unit 4: Non-Financial Credit Evaluation
  • Industry and Business Risk Analysis – Market competition, sector-specific risks.
  • Management Evaluation – Competence, governance, track record.
  • Credit Scoring Models – Qualitative and quantitative scoring systems.
  • Case-Based Credit Appraisal – Application of tools to real-life credit cases.

Module III: Credit Ratings and Credit Risk Measurement

  • Unit 5: Credit Rating Systems
  • Role and Importance of Credit Ratings – Investors' and lenders' perspectives.
  • Rating Methodologies – Criteria used by rating agencies for assessing credit risk.
  • Internal vs. External Ratings – Differences, uses, and limitations.
  • Credit Rating Agencies in India – CRISIL, ICRA, CARE, India Ratings.
  • Unit 6: Credit Risk Quantification Models
  • Probability of Default (PD), Loss Given Default (LGD), Exposure at Default (EAD) – Core concepts.
  • CreditMetrics and CreditRisk+ Models – Basics of portfolio risk modelling.
  • Expected Loss vs. Unexpected Loss – Applications in banking.
  • Stress Testing and Scenario Analysis – Measuring the impact of adverse events.

Module IV: Credit Risk Mitigation and Regulatory Framework

  • Unit 7: Credit Risk Mitigation Methods
  • Collateral and Guarantees – Types, valuation, and risk reduction.
  • Loan Structuring and Covenants – Term sheets, restrictive covenants.
  • Credit Derivatives – Credit default swaps, securitisation basics.
  • Recovery and Resolution Mechanisms – SARFAESI Act, DRT process, IBC basics.
  • Unit 8: Regulatory Framework for Credit Risk
  • RBI Guidelines on Credit Risk Management – Prudential norms, provisioning standards.
  • Basel I, II, III Norms – Capital requirements and credit risk implications.
  • Internal Capital Adequacy Assessment Process (ICAAP) – Purpose and components.
  • Recent Trends in Credit Risk Regulation – Digital lending, fintech, credit bureaus.

Reference Books

  • 6 “Credit Risk Management” – S. Ravi & R. Viswanathan
  • 7 “Banking Theory and Practice” – K.C. Shekhar & Lekshmy Shekhar
  • 8 “Risk Management in Banks” – Dr. Jyotsna Sethi & Dr. Nishwan Bhatia
  • 9 “Credit Appraisal, Risk Analysis and Decision Making” – Dr. D. Venkataramana Reddy
  • 10 “Bank Credit Management” – D. Muraleedharan

Reproduced from the University of Mumbai syllabus for B.Com. (Investment Management) under NEP 2020, in force from the academic year 2026-27. Wording is as printed in that syllabus. Module numbering is as printed there too.

The complete syllabus

This subject is cut from the University circular for its year. Open a document here if you want the whole thing rather than a single subject.

PDF BCom (Investment Management) Sem I & II (2024-25) NEP NEP 2020 syllabus, in force from 2024-25 Read full PDF Read
PDF BCom (Investment Management) Sem III & IV (2025-26) NEP NEP 2020 syllabus, in force from 2025-26 Read full PDF Read
PDF BCom (Investment Management) Sem IV Community Engagement Project (2025-26) NEP NEP 2020 syllabus, in force from 2025-26 Read full PDF Read
PDF BCom (Investment Management) Sem V & VI (2026-27) NEP NEP 2020 syllabus, in force from 2026-27 Read full PDF Read
Report or request
Done!