Credit Risk Black Book | What They Still Do Not Teach You at Banks and Business Schools (Credit-Cue)

How can you grasp true reality beyond borrowers' financial statements in order to prevent repeated losses... while maintaining your viewpoint without the organizational squabbles or subservience that are frequently required to carry out your views?

You rely on data, but data ahead of a deep worldview is putting the cart before the horse. One needs to first enhance one's cognition to grasp the way the world works without relying on data, or else the data is often misleading. Also, the fundamental tools of risk evaluation are often wrongly understood.

In this book, we will travel from a 35,000-foot view to the last few feet. We will not lose sight of the fact that it is the inner transformation & realization of knowledge that matters more than the awareness of the knowledge per se.

The book delivers this with a 5-step journey based on a pithy examination of 5 key aspects (Credit-Cue approach):

1. Root Tools 2. Worldview 3. Molecular Portfolio 4. Perception and Cognition Enhancement Without Additional Information 5. Heterodoxy

Step 1. Root Tools: Corrected, Redefined and Narrowed. Sharpen root tools to measure & forecast for tactical counter-party assessment. Confront your assumptions about the basics to develop incisive new tools that bite hard & fast.

Step 2. Worldview: Uncovering Hidden Corners and Interlinkages of Global Order. Develop a worldview to see comprehensively before you measure. Understanding how societies truly operate through the integrated lenses of crime, historical identities, hidden taxation, the unsaid impact of oil and gas policies, the unsaid influence of central banking, money supply, and sensuality.

Step 3. Portfolio: Harness it Entirely to Vanquish Blindspots: Develop tools for molecular decomposition of the entire portfolio & form the basis for an ultra-fast, comprehensive, & continuous stress-based full portfolio review as opposed to limited sample-based reviews.

Step 4. Deep Mind: Hone & Anchor Your Deep Mind without Endless Information. Psycho-analytical tools for developing a deeper mind. What is the fundamental nature of reality & the gaps in the system of logic used by us? How to stop your faults, such as ego, fear and anger from outgrowing your ability to learn?

Step 5. Heterodoxy: Being Different Without Damaging. How to be a successful heterodox? Why is heterodoxy the best tool to rejuvenate your inner self and also help others, including your adversaries?

A practitioner's toolkit. To get the most from the book, read empty-mindedly. General reading may only provide academic or intellectual understanding.

>$8 billion credit portfolios for major oil/gas, food/agriculture, and other banks in ~50 countries. The approach was created during his time in New York (2008 crisis), where he built a $3 billion global credit portfolio with zero losses for a major global bank.

Approach: Directional not literal. Chapters cover 33 key points of examination in 10-15 minutes modules each.

Credit risk managers, underwriters, analysts, and senior hands-on bankers responsible for counter-party risk management will benefit from the book.

Any money-risk situation can use the tools.