What Is a Credit Risk Management System?

Credit risk management refers to the comprehensive supervision and control over the links from customer credit investigation, payment method selection, credit limit determination to payment recovery, etc. To ensure the safe and timely recovery of receivables.

Credit risk management

I. Quantitative difficulties in credit risk management.

Credit risk management has problems that are difficult to quantify and measure. Compared to market risk management with sufficient data and mathematical statistics models, traditional credit risk management shows a lack of scientific quantitative analysis methods and relies more on qualitative analysis and managerial subjective experience and judgment of artistic management models . The main reasons for the difficulty in quantitative credit risk analysis and model management are twofold: one is data

For nearly 20 years,

Credit risk is an ancient form of risk. For a long time, people have adopted many methods to avoid it in order to reduce losses. Traditional credit risk management methods mainly include expert systems and loans

On February 26, 2019, the "China Banker Survey Report (2018)" (hereinafter referred to as the "Report") jointly issued by the China Banking Association and PricewaterhouseCoopers made 2,380 bankers from 127 banking financial institutions survey. The results show that 60.8% of bankers believe that the risk of concentrated outbreaks of non-performing loans will be the main risk facing the banking industry. At the same time, 32.4% of bankers regard non-performing loan growth as the biggest source of pressure for bank operations. ^[3]