Remotely assess operational risk and evaluate issues across the customer lifecycle
MANAGING THE CREDIT RISK PROCESS
Credit risk is simply the assessment of the risk that a customer will default on payment for a product or services that has been provided.
In many businesses controlling this risk is a critical element in profitability.
Accept too much risk, revenue loss increases; too little, growth is constrained. It has to be just right, finding the ideal balance helps maximise profitability.
KEY CONTROL POINTS
In order to manage this risk there are a couple of key control points within the credit risk lifecycle to be mindful of.
Customer acquisitionExisting account managementDefaulting accounts
At each point various strategies can be designed and employed to balance risk and optimise profitability.
Examples include; credit availability levels, risk based pricing or deposit policy.
Determining and executing effectively on these strat...
In order to access this content an ROAR Membership is required.
To join or and create an account click here or sign in below