信用风险管理英文版
信用风险管理实务(英文版)
信用风险管理实务(英文版)Credit Risk Management PracticesIntroduction:Credit risk management is an integral part of the financial industry, ensuring the stability and profitability of financial institutions. It involves the assessment, measurement, monitoring, and control of credit risk to mitigate potential defaults and losses. This article aims to discuss the key practices in credit risk management and their importance in maintaining a healthy credit portfolio.1. Credit Risk Assessment:The first step in credit risk management is the assessment of creditworthiness. Financial institutions need to evaluate the creditworthiness of potential borrowers before extending credit. This includes analyzing their financial statements, credit history, and market conditions to determine the likelihood of default. By conducting thorough due diligence, institutions can identify potential risks and make informed lending decisions.2. Credit Risk Measurement:Credit risk measurement refers to the quantification of credit risk through various statistical models and methodologies. This process helps institutions understand the potential loss they might incur due to credit default. Common measures include the Probability of Default (PD), Loss Given Default (LGD), and Exposure at Default (EAD). These measures enable institutions to estimate the risk-adjusted return on their credit portfolio and allocate capital accordingly.3. Credit Risk Monitoring:After extending credit, it is essential to continuously monitor the creditworthiness of borrowers. Regular monitoring allows institutions to identify early warning signs of potential default, enabling them to take timely actions to minimize losses. Key monitoring activities include reviewing financial statements, credit reports, market conditions, and conducting site visits or customer interviews when necessary.4. Credit Risk Control:Credit risk control involves implementing strategies and measures to mitigate credit risk. This includes setting appropriate credit limits, establishing credit policies and procedures, and utilizing collateral or guarantees to secure loans. Institutions should also establish an effective credit risk review process, ensuring that credit exposure is within acceptable limits and periodically reassessed.5. Credit Risk Diversification:Diversification is crucial in credit risk management to reduce concentration risk. Institutions should strive to have a well-diversified credit portfolio, spreading their exposure across various industries, geographies, and borrower types. This helps mitigate the impact of potential defaults in specific sectors or regions and reduces the overall risk of the portfolio.6. Credit Risk Mitigation:In addition to diversification, various credit risk mitigation techniques can be employed. These include credit default swaps, loan syndications, securitization, and credit insurance, amongothers. These risk mitigation tools help transfer or share credit risk with other parties, reducing an institution's exposure to potential defaults.7. Stress Testing:Stress testing is an important practice in credit risk management that evaluates the resilience of a credit portfolio under adverse scenarios. Institutions simulate a range of stress scenarios, such as economic downturns or industry-specific shocks, to assess the potential impact on credit portfolios. This helps institutions identify vulnerabilities, evaluate the adequacy of capital reserves, and develop contingency plans.Conclusion:Effective credit risk management is critical for the financial stability and profitability of institutions. By employing robust credit risk assessment, measurement, monitoring, and control practices, institutions can reduce the likelihood and impact of defaults, resulting in a healthier credit portfolio. Additionally, diversifying credit exposure and utilizing risk mitigation techniques further enhance the resilience of institutions against credit risk. Regular stress testing ensures that institutions are prepared for unexpected adverse scenarios. Overall, a comprehensive credit risk management framework helps institutions make informed lending decisions and protect themselves from potential losses.Sure! Here is the continuation of the article:8. Credit Risk Reporting:An essential component of credit risk management is regular andcomprehensive reporting. Institutions should establish a robust reporting framework to monitor and communicate credit risk exposures and trends to relevant stakeholders, including senior management, regulatory authorities, and investors. This helps facilitate informed decision-making, risk assessment, and strategic planning.9. Credit Risk Culture:A strong credit risk culture within an institution is crucial for effective risk management. It involves instilling a risk-aware mindset and promoting accountability at all levels of the organization. Employees should be educated on credit risk principles, policies, and procedures to ensure consistent adherence to risk management practices. Additionally, establishing a reward system that aligns with prudent credit risk management encourages employees to make sound credit decisions.10. Regulatory Compliance:Credit risk management practices must comply with applicable regulatory requirements. Financial institutions are subject to regulations and guidelines issued by regulatory authorities, such as the Basel Committee on Banking Supervision. Compliance with these regulations ensures that institutions maintain adequate capital levels, risk management frameworks, and disclosure requirements. Failing to comply with regulatory standards can lead to penalties, reputational damage, and legal consequences.11. Technology and Analytics:Technological advancements and data analytics play a pivotal role in credit risk management. Institutions should leverage innovativetools and systems to automate and streamline credit risk processes, improve data accuracy, enhance risk modeling capabilities, and enable real-time monitoring. Predictive analytics can help identify early warning signals of potential credit deteriorations and facilitate proactive risk management actions.12. Scenario Analysis:Apart from stress testing, institutions can benefit from conducting scenario analysis to assess the impact of specific events or market changes on their credit portfolios. This involves simulating different scenarios, such as changes in interest rates, commodity prices, or currency fluctuations, to evaluate the sensitivity of the portfolio and identify potential risks. By assessing various scenarios, institutions can better prepare for potential credit risks and adapt their risk management strategies accordingly.13. Portfolio Review and Remediation:Regular portfolio reviews are essential to identify underperforming loans and take appropriate remedial actions. Institutions should periodically assess their credit portfolios, identifying loans with high credit risk or potential defaults. Actions may include restructuring loans, providing additional support to borrowers, or even selling off non-performing assets. This proactive approach helps minimize losses and improve the overall quality of the credit portfolio.14. Risk Appetite Framework:Establishing a risk appetite framework is crucial in credit risk management. This framework sets the boundaries within which the institution is willing to accept credit risk. It defines the tolerancelevel for credit risk exposure and guides strategic decision-making. The risk appetite framework should align with the institution's overall risk profile, business strategy, and financial goals, ensuringa consistent and well-defined approach to credit risk management.15. Talent and Expertise:Having a competent and experienced credit risk management team is vital for effective risk management. Institutions should invest in hiring and retaining skilled professionals with expertise in credit analysis, risk modeling, financial markets, and regulatory compliance. Additionally, providing ongoing training and professional development opportunities helps keep the team updated with the latest industry trends and best practices in credit risk management.Conclusion:In conclusion, effective credit risk management practices are essential for financial institutions to mitigate the potential defaults and losses associated with lending activities. Credit risk assessment, measurement, monitoring, and control form the foundation of a comprehensive risk management framework. Diversification, risk mitigation techniques, and stress testing further enhance risk resilience. Strong credit risk culture, regulatory compliance, technology utilization, scenario analysis, and portfolio reviews contribute to a robust credit risk management framework. Ultimately, successful credit risk management enables institutions to make informed lending decisions, protect themselves from potential losses, and ensure the stability and profitability of their credit portfolios.。
德勤-信用风险管理
Improve Profitability
Credit Strategy/ Plan
Common Performance
Metrics
Credit Objectives and Risk
Tolerances
Credit Policies
Credit Risk Management
Processes
Reporting
Credit Risk Management
Enhancing Your Bottom Line
Ebrahim Shabudin Managing Director Deloitte & Touche LLP
Credit Background
Thorough identification and accurate measurement of credit risk, supported by strong risk management can help improve the bottom line …..An uncertain and volatile economic
Companies are exposed to significant levels of credit risk emanating from different sources
Accounts Receivables Other Notes Receivables Buyer and Franchise Financing With Recourse Financing
Recoveries
Disposal / Risk
mitigation
Collections
Exposure measurement
某企业信用风险管理方案(英文版)
DSO Impact … an example
Actual Q3 A/R Q3 Sales \ DSOs =
Company A $295,396,000 $261,201,000 124*
某企业信用风险管理方案（英文版）
Credit Background
❖ Thorough identification and accurate measurement of credit risk, supported by strong risk management can help improve the bottom line
❖ Effective credit risk management limits credit losses and provides stable cash flows and earnings Marketplace rewards companies exhibiting earnings and cash flow stability with higher P/E multiples Marketplace penalizes credit induced volatility and “surprises” ❖ Raises questions about quality of management
Credit Strategy & Risk Tolerance
Credit Strategy Statement and Specific Quantifiable Objectives Risk Tolerance
德勤-信用风险管理(英文PPT 35页)
Improve Profitability
Credit Strategy/ Plan
Common Performance
Metrics
Credit Objectives and Risk
Tolerances
Credit Policies
Credit Risk Management
Processes
Reporting
Reassessment Credit Strategy & Risk Tolerance
A New Paradigm
A new business paradigm had evolved: causing a lack of reliance on good fundamental analysis The idea that stock market values would continue to go up indefinitely
The business strategies and objectives drive the establishment of credit policies and procedures. Measurement and reporting as well as the use of current technologies enhance credit decision-making and improve risk management. The entire process is continually re-evaluated and improved.
stability with higher P/E multiples – Marketplace penalizes credit induced volatility and “surprises”
德勤-信用风险管理-36页文档
– Poor credit risk management resulting in negative impact to bottom-line is heavily penalized by markets
Credit Risk Management
Enhancing Your Bottom Line
Ebrahim Shabudin Managing Director Deloitte & Touche LLP
Credit Background
Thorough identification and accurate measurement of credit risk, supported by strong risk management can help improve the bottom line …..An uncertain and volatile economic
Credit as a Facilitator
Credit risk management is important
– Credit is a facilitator of business growth and performance
– High business margins tend to attract lower quality clients and therefore higher risk profile to manage
德勤信用风险管理(英文版)(PPT)
Value Proposition
Credit plays a critical role in “selling〞 products and services Expands revenue opportunities with creditworthy, incremental customers Utilizes innovative structures to support business relationships
– Project Finance
– Structured Transactions
– Leases with Recourse
Derivatives Exposures
– FX, Interest Rate Risk, Commodities etc.
Collateral Risk
– Parent or Third Party Guarantees
tends to include managing on a transactional basis by evaluating specific attributes such as structuring, collateral and pricing
represents managing on a portfolio basis including aspects such as concentrations, correlations and diversification
Actual Q3 A/R Q3 Sales \ DSOs =
Company A $295,396,000 $261,201,000 124*
Peer Average 51.3
德勤-信用风险管理
Compliance
Transactions
Collateral management
Contracts & Documentation
Credit Risk Management
A complete and coherent risk management framework contains the following elements
Reassessment Credit Strategy & Risk Tolerance
A New Paradigm
A new business paradigm had evolved: causing a lack of reliance on good fundamental analysis The idea that stock market values would continue to go up indefinitely
Credit Risk Areas to Consider
Origination/ Assessment
Sales Channels
Risk Strategy
Underwriting Standards
Credit Application
Analysis
Business/ Industry
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德勤-信用风险管理
results has a tendency to put pressure on the checks and balances within businesses
Business Strategy Systems Operations Finance
Business Performance
Measures
Value Creation
Organizations need a rigorous set of measures to support continuous improvement
Credit Risk Management
Enhancing Your Bottom Line
The AFP 23rd Annual Conference New Orleans November 3-6, 2002
Ebrahim Shabudin Managing Director Deloitte & Touche LLP
stability with higher P/E multiples – Marketplace penalizes credit induced volatility and “surprises”
Raises questions about quality of management
Corporate Credit Risk
Objectives
Type of Exposure
Instruments or Methods
德勤-信用风险管理(英文PPT35
Credit Risk Management
A complete and coherent risk management framework contains the following elements
Credit Policies & Procedures
Credit Strategy & Risk Tolerance
– Project Finance – Structured Transactions – Leases with Recourse
Derivatives Exposures
– FX, Interest Rate Risk, Commodities etc.
Collateral Risk
– Parent or Third Party Guarantees – Commercial and Standby Letters of Credit
Credit Risk Areas to Consider
Origination/ Assessment
Sales Channels
Risk Strategy
Underwriting Standards
Credit Application
Analysis
Business/ Industry
cash flow stability with higher P/E multiples – Marketplace penalizes credit induced volatility and
“surprises” Raises questions about quality of management
relationships
信用风险管理-without provision policy
1．监督运营公司催收欠款的工作。
2．每周准备已到期但尚未付款的应收帐款的报告
不适用
到期日后7日内
1．运营公司财务部发出语气强烈的催款通知书；
2．运营公司总经理监督并出具解决方案，分析解决的可能性；
3．如7日内未能收回欠款，则财务部将全部资料移交户外集团财务部，并发出下画通知书同时停止确认收入。由媒体资产管理部门具体执行下画。
3．如接手后14日内仍未回收时，则将全部资料移交户外集团法律部。
以上提醒函及催收函均以运营公司授权的形式发出。
法律部收到户外集团转交来的全部资料后，如7日内仍未收回，则以户外集团法律部名义出具语气强烈的催收函。该催收函运营公司授权的形式发出。
到期日后一个月内仍未收回欠款
1．运营公司总经理监督回收欠款的工作。
2．每周向户外集团财务部提交跟踪报告。
1．监督运营公司催收欠款的工作；
2．协助法律部准备诉讼资料。
准备诉讼材料。
时间
行动
运营公司
户外集团信用风险管理部
户外集团法律部
到期日前7日
1．由收款人员联络并提醒客户，销售总监监督执；
2．报运营公司总经理备案；
3．呈报户外传媒集团信用风险管理部备案。
1．关注即将到期的应收帐款；
2．向户外集团财务总监提交即将到期的应收帐款的报告。
不适用
于到期日
1．运营公司财务部发出提醒客户付款的催款通知书；
1．监督运营Biblioteka 司催收欠款的工作；2．要求运营公司准备包括销售合同、客户确认记录和付款记录（如有）等全部与欠款有关的资料。
不适用
到期日后7日至一个月内
1．运营公司总经理监督回收欠款的工作；
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Company A $295,396,000 $261,201,000 124*
Peer Average
51.3 D Cash
51.3 $261,201,000 $122,002,230
+$173,393,770
Equals 295.4M/261.2M x 90(or number of days in sales period)
Credit Risk Management
Enhancing Your Bottom Line
Credit Background
Thorough identification and accurate measurement of credit risk, supported by strong risk management can help improve the bottom line …..An uncertain and volatile economic environment significantly impacts this ability …..The desire to grow and turn in outstanding results has a tendency to put pressure on the checks and balances within businesses
Reporting
The business strategies and objectives drive the establishment of credit policies and procedures. Measurement and reporting as well as the use of current technologies enhance credit decision-making and improve risk management. The entire process is continually re-evaluated and improved.
The measures drive value creation and should support problem identification and correction.
Credit Risk Management’s Inter-related Activities
CREDIT POLICY Origination
Technology & Data Integrity
Reassessment Credit Strategy & Risk Tolerance
A New Paradigm
A new business paradigm had evolved: causing a lack of reliance on good fundamental analysis The idea that stock market values would continue to go up indefinitely Increasingly competitive, complex and volatile market place Higher than expected actual debt burdens Extensive reliance on unrealistic future cash flows Failures in corporate governance Questionable personal and corporate ethics
Performance-based management utilizes metrics that measure actual performance against predetermined thresholds. The thresholds are established taking into account the organization’s strategy, operating environment and process controls.
Note also that Critical Suppliers to the company may pose specific credit risk
DSO Impact … an example
Actual Q3 A/R Q3 Sales \ DSOs = Hypothetical DSOs Q3 Sales \ Q3 A/R =
Analysis
Risk Mitigation
Objectives Type of Exposure
Business/ Industry Financial Credit
Credit Scoring and Ratings
Instruments or Methods
Performance Management
RISK MANAGEMENT
Disposal / Risk mitigation
Recoveries
Collections
Customer management
Portfolio management
Credit Decisions
Compliance
Transactions Collateral management
Credit Strategy & Risk Tolerance
Credit Strategy Statement and
Risk Tolerance
Coordination with Business
Specific Quantifiable Objectives Management Review
Credit as a Facilitator
Credit risk management is important
Credit is a facilitator of business growth and performance High business margins tend to attract lower quality clients and therefore higher risk profile to manage Clients (buyers) may be concentrated in selected industries and provide limited portfolio diversification opportunity Poor credit risk management resulting in negative impact to bottom-line is heavily penalized by markets
Pricing & terms
Credit limit
Collateral acceptance Contracts & Documentation
Credit Risk Management
A complete and coherent risk management framework contains the following elements
Sales channels
Reporting
Credit Analysis
Financial analysis Credit analysis Exposure aggregation Risk rating Credit scoring Exposure measurement Management reporting
Value Proposition
Credit plays a critical role in “selling” products and services
Expands revenue opportunities with creditworthy, incremental customers Utilizes innovative structures to support business relationships Effective credit risk management limits credit losses and provides stable cash flows and earnings Marketplace rewards companies exhibiting earnings and cash flow stability with higher P/E multiples Marketplace penalizes credit induced volatility and “surprises” Raises questions about quality of management
Project Finance Structured Transactions Leases with Recourse
Derivatives Exposures
FX, Interest Rate Risk, k
Parent or Third Party Guarantees Commercial and Standby Letters of Credit
Credit Policies & Procedures Credit Strategy & Risk Tolerance Governance, Control and Implementation
Measurement Methodologies
Analysis & Risk Management
Monitoring/ Control Exposure Management Aggregation Control Periodic Account Reviews Payments/Aging Credit Condition Compliance with Covenants, Terms Technology/Reports Transactions/ Bookings Risk-adjusted Return