Objectives On completion of this tutorial, you will be able to:

• Recall how both banks and regulators failed to understand or quantify the risks that were building up in the system in the lead-up to the financial crisis and Greek debt crisis
• Identify the lessons learned from the failure of leading banks and from banks that didn't fail
• Recognize the response of regulators to the crisis, including updated regulatory requirements, strengthened regulatory oversight, and greater loan loss provisioning
• Recognize the response of bank management, including a review of business strategy and credit risk appetite limits, and enhanced balance sheet management

Tutorial Overview Credit risk is largest risk type that banks are exposed to and is often the prime source of earnings. It is important therefore that bank management fully understands the size and nature of these exposures when accepting them and managing them until they are settled, canceled or written off. In doing so, management should learn lessons from not only their own failures but those of others. In this context this tutorial sets out some of the lessons learned from systemic and bank specific failures, why some banks didn't fail, and how these learnings have been used to inform changes to regulatory requirements and management practices. Prerequisite Knowledge Credit Risk - Lifecycle Tutorial Level: Intermediate Tutorial Duration: 65 minutes