Abstract: Elimination of credit risk is impossible as long as credit forms an integral part of the economy. This chapter establishes the context of credit risk, for an organization as a whole, and explains how credit risk management is set up. An organization that manages credit risk well will succeed and attain its business objectives — this is true for both financial intermediaries and non-financial firms. For most non-financial businesses, credit risk is considered critical and is usually regarded as one of the major risks to be monitored. Credit risk appetite is dependent upon the human, financial and operational resources an organization has. A SWOT analysis of credit risk management is advisable on a periodical basis. A well understood credit risk culture enables the decision takers and employees in credit risk management to take effective and intelligent risk decisions, ensuring the achievement of the credit risk management objectives.
Publication Year: 2013
Publication Date: 2013-05-10
Language: en
Type: other
Indexed In: ['crossref']
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Cited By Count: 17
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