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CREDIT RISK MANAGEMENT FORUM

 

Infocredit Group is organizing the Credit Risk Management Forum, which is taking place on Wednesday 25th of September 2019 at the Landmark Nicosia Hotel (former Hilton Cyprus). 

 

Download PDF program - Credit Risk Management Forum

 

 

 

In a modern market, businesses face enormous challenges and need to overcome obstacles, as well as well-hidden traps. The right choice of partners and customers is important for the financial wealth of each business. Trusting and giving credit to new or old collaborations is now a decision taken on studying objective criteria and data.


At the Credit Risk Management Forum, both Infocredit Group specialists and partners with extensive experience in managing and minimizing credit risk will share their knowledge and provide useful guidance.


Among other subjects to be discussed are good practices in credit risk management, credit insurance, and alternative sources of commercial finance.

                                                                                                 

 

While businesses have faced difficulties over the years for a multitude of reasons, one major cause of their continuous financial problems remains directly related to poor credit risk management. Traditionally, businesses used to manage credit risk using a combination of standard due diligence measures, research and common sense. Nevertheless, this superficial level of credit risk management has proved somewhat problematic over recent years, with the higher levels of risk that businesses are now facing. With increasing regulatory pressure and ongoing economic turbulence, business leaders are being forced to rethink their credit risk management capabilities and infrastructure in a bid to equip themselves with the means of making “smarter” credit risk decisions. In fact, the first step towards ensuring the survival, progress and success of a company lies in an increased awareness of the seriousness and variety of credit risks that threaten it to help better model and manage its risks.

 

Under these circumstances, many companies, banks and organizations have already established departments solely responsible for assessing credit risks arising from relationships with their current and potential customers, clients and associates. They have also formed practices and techniques in order to identify credit risk and to provide successful and efficient credit risk management and consulting. By knowing customers, clients and associates, financial institutions can ascertain if that company, organization or individual is subject to credit. Furthermore, by analyzing non-financial and other risks, the credit policy department can judge whether the particular risk is relevant to other customers and associates of the institution. As Risk Management is a continuous process of identifying risks which are sometimes subject to quick and volatile changes, it may result in opportunities for portfolio growth or may aid in avoiding unacceptable exposures for the institution. Finally, by focusing on the financial capacity of the company and by examining its financial performance, a company can manage credit risks more efficiently.

 

The study of credit risk management provides a framework for companies to understand the true nature of credit risk as well as how or when it is likely to arise. While profitability is a consideration, credit risk management is about seeing beyond profitability, which can be manipulated. The purpose of credit risk management is to help the CEOs and CFOs to develop a quantifiable sense about operational cash flow. It is, moreover, well-known that the financial performance and sustainability of a company or organization reflect the company’s management decisions, including credit risk management and other transaction risks and financial difficulties.

 

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