Paper , Order, or Assignment Requirements

Question 1          (15 marks | Word limit: 550 words)

You are appointed the Senior Credit Risk Analyst in a new banking institution and have been asked to draft a set of standards that define the full credit risk management process that the new institution will follow.

Provide a brief outline of the five (5) key steps in the risk management process and explain how each step can be used to systematically assess the creditworthiness of borrowers.

5 risk management process steps combine to deliver a simple and effective risk management process;

• Step 1: Identify the risk
• Step 2: Analyse the risk
• Step 3: Evaluate or Rank the risk
• Step 4: Treat the risk
• Step 5: Monitor and Review the risk