Getting qualified or accredited for a credit analyst job can be tough. It may require different scrutiny and prerequisite in terms of educational background, job exposure, and knowledge on the job especially if the position being applied for is on a managerial or senior level. The career of credit analysis concentrates mainly on the assessment of the loan applicant’s creditworthiness to pay. Financial data are being assessed here through quantitative analysis. The job of credit analysis is vast. It is available in wide array of companies from investment banks and retail operations to credit rating agencies and commercial banks.
Professional certification is a big qualification in a credit analyst job. It does not only provide extra level of expertise but it is also a credential that will separate you from other applicants and give you an edge to demand for higher pay or increase in pay. This certification is called as Credit Risk Certification or CRC. It is a professional designation bequest by the Risk Management Association. It consists of seven areas of knowledge in credit analysis that will aid credit analysts to improve financial stability, measure and manage corporate, commercial, and retail credit risks for their clients.
Credit analysts who have been working in the areas of operational risk, market risk, and credit risk for at least five years already should consider getting CRC or Credit Risk Certification. Financial services professionals like credit analysts who plan to obtain CRC designation should become operating members of the Risk Management Association. They should complete 45 units of continuing education undertakings like involving in professional events and relevant courses, every three years.
The CRC or Credit Risk Certification requires money and time investment. It requires the applicant to pass the exam, which covers extensive areas of credit risk assessment. These areas include accurate assessment of the financial condition of the business, quality and strength of the business’ cash flow, sources for loan repayment of the business, and the value of the business’ collateral’s. With the complexity of these mentioned areas, applicants should be well-versed in commercial credit, financial accounting, and tax-return analysis.
The CRC exam is a five-hour exam that has 126 multiple-choice question (128 for Canadian exam). To pass this exam, RMA recommends the applicant to undertake a five-hour practice exam and 40-80 hours of study. The CRC exam is administered via online for two testing windows, one in the fall and one in the spring. Every window is approximately open for two months duration.
The exam fee is different for RMA members and non-members. Same thing applies to the costs of the practice exam. An optional web seminar is also offered to applicants that offers test-taking and reviews on the test subject and strategies. Exam study materials are available for purchase as well. On the other hand, recertification of the CRC is necessary for every three years, thus continuous education would be essential.
At New York Institute of Finance, a professional certificate in credit is offered by a financial training company. This certificate requires the applicants to take four fundamental courses out of the possible twelve courses, and two elective courses instead of seven. The courses covered in the certificate tackles the topics on credit derivatives, cash flow, financial statement analysis, and credit risk analysis. The program of the courses offer online courses, evening courses, and day courses. The entire duration of all the courses is within a three-year period and should be completed within this time frame in order to earn the certificate.