Credit and lending risk

  • How do lenders determine the credit risk?

    The credit score serves as a risk indicator for the lender based on your credit history.
    Generally, the higher the score, the lower the risk.
    Credit bureau scores are often called "FICO\xae Scores" because many credit bureau scores used in the U.S. are produced from software developed by Fair Isaac Corporation (FICO)..

  • What are the major risks in lending?

    These risks are: Credit, Interest Rate, Liquidity, Price, Foreign Exchange, Transaction, Compliance, Strategic and Reputation.
    These categories are not mutually exclusive; any product or service may expose the bank to multiple risks..

How does credit risk affect loan losses?

Credit risk, if not mitigated appropriately, can result in loan losses for a lender; the losses adversely affect the profitability of financial services firms.
Some examples of strategies that lenders use to mitigate credit risk (and loan loss) include, but are not limited to:.


Categories

Credit risk and life insurance
Credit risk lifecycle
Listendata credit risk
Credit risk loan tape
Credit risk linkedin
Credit risk limits
Credit risk logistic regression
Credit risk lgd
Credit risk levels
Credit and market risk
Credit risk and mitigants
Credit and market risk regulations
Credit risk and machine learning
Credit risk and meaning
Banking credit and risk management program
Credit operation and risk management
Credit and counterparty risk management
Credit risk and non performing loans
Credit risk news
Credit risk notes