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Credit Risk Management

Credit Risk Management

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Published by Mahmudur Rahman

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Published by: Mahmudur Rahman on Aug 01, 2012
Copyright:Attribution Non-commercial

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08/01/2013

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Credit Risk Management In Banks 
Prepared by:
 Md. Shahidul Islam ID#1125069Mahmudur Rahman ID#1035080Md. Imran Rony ID#1110837Eftekhar Ahamed ID# 1035038
 
What is Credit Risk Management
 
Credit risk management works by helping lenders cut back thechances of lending to someone who will never pay them back.It's performed by using a series of formulas based on aperson's income, current debts, credit history and score.When all of this information is taken into consideration, it canhelp a bank determine if someone is a good credit risk or not.
 
Significance of CRM
 
As unpleasant as it sounds, credit risk management is a necessary part of the financial world. In fact, it's so important, businesses need to reviewwhether their current risk indicators are working. If not, it's time tochange the calculations and figure out a new way to determine acreditworthy individual or business. That might include such things aspersonal interviewing and finding out the reason for the new creditrequest.

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