Credit risk is the risk of financial loss to a lender should a customer or counterparty default. It is managed through a variety of risk management techniques, including documentary mitigants and periodic reviews. The accurate measure of credit risk is an essential tool for credit decision making and internal risk management.
Key learning objectives:
What is credit risk?
Understand how credit growth facilitates economic growth
What are the types of credit risk?
How is credit risk measured?
Understand how we can mitigate and manage credit risk
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