CCP Advanced Level
Advanced Credit Risk Management glossary
Every term this guide defines, A to Z, each with the chapter that teaches it. Open it when a word in a question is unfamiliar, and test yourself on it in the last week: cover the definition and say it in one sentence.
5 terms from the free first chapter
A
- Active CPM
The portfolio is actively managed post-origination, through trading credit assets, credit derivatives, and securitisation (see the chapter on portfolio risk mitigation), adjusting exposure without waiting for facilities to mature.
- Advisory role
The credit department advises business units on portfolio implications without formal veto authority.
P
- Passive CPM
Originated exposures are held to maturity, risk managed primarily through origination discipline and diversification at the point of lending.
- Profit centre role
The credit portfolio function is itself measured on risk-adjusted portfolio returns, actively trading exposure (see the chapter on portfolio risk mitigation) rather than only monitoring it.
V
- Veto rights model
The credit department can block individual transactions that would breach portfolio-level risk limits, a control-focused role.
The full glossary adds every term from the other 15 chapters, A to Z, each with the chapter that teaches it.