Credit Risk Management
Credit risk management is the practice of mitigating losses by understanding the adequacy of a bank’s capital and loan loss reserves at any given time – a process that has long been a challenge for financial institutions.
Credit analysis is the method by which one calculates the creditworthiness of a business or organization. In other words, It is the evaluation of the ability
of a company to honor it financial obligations. The audited financial statements of a large company might be analyzed. Our approach for Credit analysis involves a wide variety of financial analysis techniques, including Financial ratios and trend analysis as well as the creation of projections and a detailed analysis of cash flows. Credit analysis also includes an examination of collateral and other sources of repayment as well as credit history and management ability. The primary goal is to determine how much credit should be extended to a company; thereby limiting the risk of bad debt write-off should the customer be unable or unwilling to pay.
