The Credit Cycle

Credit Risk Management Business challenges

uStrategic Issues
–Minimizing bad debt
–Understanding risk exposure across multiple divisions
–Identifying where the potential biggest losses are in the portfolio
–Managing changes in credit policy which affect portfolio performance
–Reducing cost of sales by targeting low risk accounts
uTactical Issues
–Protect the business from unforeseen major losses
–Increase cash flow
–Identify hidden risk and untapped opportunities in the customer portfolio
–Prioritize accounts by total exposure, potential losses and other criteria