Credit risk template

How do you explain credit risk?
The credit risk management framework is the combination of policies, processes, people, infrastructure, and authorities that ensures that credit risks are assessed, accepted, and managed in line with credit risk appetite.
Here we describe in detail the key elements of the credit risk management framework..
What is an example of a credit risk?
One of the modest ways to calculate credit risk loss is to compute expected loss which is calculated as the product of the Probability of default(PD), exposure at default(EAD), and loss given default(LGD) minus one..
What is credit risk framework?
Credit risk modeling refers to data driven risk models which calculates the chances of a borrower defaults on loan (or credit card).
If a borrower fails to repay loan, how much amount he/she owes at the time of default and how much lender would lose from the outstanding amount..

How do you explain credit risk?