Credit Risk Certification

Definition of 'Credit Risk Certification'


A professional designation awarded by the Risk Management Association (RMA) to individuals who have worked in commercial credit and lending or loan review for at least five years, and who pass the five-hour, 126-question CRC exam and become active RMA members.

Successful applicants earn the right to use the CRC designation with their names, which can improve job opportunities, professional reputation and pay. Every three years, CRC professionals must complete 45 hours of continuing education to continue using the designation.

Investopedia explains 'Credit Risk Certification'


The study program to earn the CRC covers seven skill sets: evaluating a client's industry, market and competitors; assessing management's ability to formulate and execute business and financial strategies; completing accurate, ongoing financial assessments of the client and its credit sponsors; assessing strength and quality of client or sponsor cash flow; evaluating and periodically inspecting collateral; identifying repayment sources and structuring and documenting credit exposure; and detecting and working out problem loans.



comments powered by Disqus
Hot Definitions
  1. Cash and Carry Transaction

    A type of transaction in the futures market in which the cash or spot price of a commodity is below the futures contract price. Cash and carry transactions are considered arbitrage transactions.
  2. Amplitude

    The difference in price from the midpoint of a trough to the midpoint of a peak of a security. Amplitude is positive when calculating a bullish retracement (when calculating from trough to peak) and negative when calculating a bearish retracement (when calculating from peak to trough).
  3. Ascending Triangle

    A bullish chart pattern used in technical analysis that is easily recognizable by the distinct shape created by two trendlines. In an ascending triangle, one trendline is drawn horizontally at a level that has historically prevented the price from heading higher, while the second trendline connects a series of increasing troughs.
  4. National Best Bid and Offer - NBBO

    A term applying to the SEC requirement that brokers must guarantee customers the best available ask price when they buy securities and the best available bid price when they sell securities.
  5. Maintenance Margin

    The minimum amount of equity that must be maintained in a margin account. In the context of the NYSE and FINRA, after an investor has bought securities on margin, the minimum required level of margin is 25% of the total market value of the securities in the margin account.
  6. Leased Bank Guarantee

    A bank guarantee that is leased to a third party for a specific fee. The issuing bank will conduct due diligence on the creditworthiness of the customer looking to secure a bank guarantee, then lease a guarantee to that customer for a set amount of money and over a set period of time, typically less than two years.
Trading Center