1、Credit Risk ManagementEnhancing Your Bottom Line Ebrahim Shabudin Managing Director Deloitte&Touche LLPThe AFP 23rd Annual Conference New OrleansNovember 3-6,2002uSpecific Quantifiable ObjectivesuManagement Review MethodologyCredit Objectives and Risk TolerancesCredit PoliciesCredit Risk Management
2、ProcessesImprove ProfitabilityReportingCredit Strategy/PlanCommon PerformanceMetricsuCredit Strategy Statement and Risk ToleranceuCoordination with Business PlanThe business strategies and objectives drive the establishment of creditpolicies and procedures.Measurement and reporting as well as the us
3、e of current technologies enhance credit decision-making and improve risk management.The entire process is continually re-evaluated and improved.Origination/AssessmentAdministrationMonitoring/ControlRiskManagementValue CreationBusiness Performance MeasuresOrganizations need a rigorous set of measure
4、s to support continuous improvementPerformance-based management utilizes metrics that measure actual performance against predetermined thresholds.The thresholds are established taking into account the organizations strategy,operatingenvironment and process controls.The measures drive value creation
5、and should support problem identification and correction.nBusiness StrategySystemsOperationsFinancePerformance ManagementSales channelsContracts&DocumentationCredit analysisCredit limitPricing&termsCredit AnalysisCredit DecisionsCollectionsCREDIT POLICYCollateral acceptancePortfolio managementFinanc
6、ial analysisDisposal/Risk mitigationCollateral managementCustomer managementExposure measurementManagement reportingExposure aggregationRecoveriesCredit scoringRisk ratingRISK MANAGEMENTCredit Risk Managements Inter-related ActivitiesComplianceOriginationReportingTransactionsCredit Policies&Procedur
7、es Analysis&RiskManagementGovernance,Controland ImplementationMeasurementMethodologiesTechnology&Data IntegrityCredit Strategy&Risk ToleranceReassessment Credit Strategy&Risk ToleranceRisk Identification,Origination,Credit Administration,etc.Risk Identification,Transaction Structuring,Approval&Prici
8、ng Decisions,Reserving,etc.Portfolio Risk Concentration,Risk Based Limits,etc.Pricing decisions,Performance measurement,business and customer segmentation,compensation,etc.A business model view of Credit Risk Infrastructure componentsRisk Assessment and Limit ManagementCredit Infrastructure and Port
9、folio ManagementCredit Analytics SupportCredit Technology Enablement Credit Quality Credit Underwriting Risk Rating System Effectiveness Counterparty and Portfolio Limits Organizational Structure Policies and Procedures Technology Selection and Implementation Problem Asset Management Risk Rating Calibration Transaction Pricing,Structure and Support Default Probability and Recovery Calibration Credit Reserve Methodology Risk Based Pricing Models Risk Adjusted Return Analysis Portfolio Value Measurement Credit Risk Measurement Credit Performance Scorecards
