What Is Credit Risk Management?
Credit risk management is managing the risk that financial obligations are met, or not met as the case may be. There are two aspects of credit risk management. There is the internal aspect of credit risk management, which is insuring that the organization has the financial wherewithal and financial flexibility to meet its outstanding as well as potential outstanding financial obligations. The second aspect is external credit risk or ensuring that the customers of the organization are able to fulfill their financial obligations and debts to the organization.
Internal credit risk management is important as it firstly affects the solvency and long-term viability of the organization. ...
Get Essentials of Financial Risk Management now with the O’Reilly learning platform.
O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.
