What Is A Credit Risk Score – How To Find The Best Company

In banking, credit risk refers to the risk arising out of an individual counterparty (a borrower or a lender) failing to meet or being prevented from meeting its obligations. Credit risk management is important for a bank to increase shareholders value. A bank can have risk model to manage credit risk. A bank can manage credit risk through robust credit analysis, reducing concentration at a portfolio, maintaining diversified loan portfolio, internal credit rating, etc.

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