Risk Management Insights

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01/04/2016 / Commercial Credit Risk Management

Useful Tips to Improve Commercial Credit Risk Management

Operational_Risk_Management_4.jpgMaintenance and improvement of credit risk management practices by banks and lenders have become a top priority. Let us share with you some tips to improve lender's insights into credit risk and take appropriate measures to maximise the risk/return profile.

How efficient is your collection and monitoring of covenants?

1. Review and monitor covenants

Covenants are conditions agreed to by the borrower as part of a loan term in commercial loans.  If they are effectively monitored, it can provide lenders with an early warning of loan deterioration. 

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22/05/2015 / Risk Culture, Risk Management, Commercial Credit Risk Management

Business Intelligence for Commercial Credit Risk Management

Good practice in credit risk management is to turn periodic core banking data (eg. portfolio balance vs arrears) into meaningful information for ongoing portfolio monitoring and loan loss analysis. The process of transforming raw data into meaningful information to support business decisions is denoted by the term ‘Business Intelligence’ (BI). This can provide banks and other commercial lenders with better visibility and management of credit risk across commercial credit portfolios.

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