Credit risk mitigation techniques pdf

  • How to do credit risk mitigation?

    Ask for collateral or guarantees to secure the debt.
    Employ financial instruments like trade credit insurance to mitigate risk exposure in trade transactions.
    Set up risk monitoring on obligor's creditworthiness, credit conditions, and intended use of credit facilities..

Abstract: Banks must use high mitigation techniques of risk which are suitable with the nature, the complexity and the level of the risks.

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