Through Fannie Maes market-leading
credit risk management capabilities, the company acts as an intermediary between lenders and investors by setting standards, providing
credit risk management oversight, and maintaining stability through business cycles.
The Ambit
credit risk management solution is to be used for credit assessment and credit portfolio monitoring for risk-based decisions, pricing and improved capital and
credit risk management.
In today's changing financial landscape an organisation's ability to effectively monitor and manage its
credit risk can mean the difference between success and survival, said senior conference producer at Fleming Gulf Zenab S Husain.
Husain, Senior Conference Producer at Fleming Gulf quotes C[pounds sterling]In light of the challenges posed by rapidly evolving credit markets and unprecedented growth of the Middle East financial sector, effective
credit risk management has indeed become one of the most important aspects of a successful financial institution's operation.
Credit risk and receivables management functions have to be coordinated, with the front-end credit evaluation properly limiting risk of bad-debt write-offs, while the back end collections have to be automated to accelerate customer payments.
The main focus is modeling
credit risk: measuring portfolio
credit risk and pricing different securities exposed to
credit risk.
The Basel Committee comment letter also discussed the own
credit risk issue.
After operational risk, the biggest challenge facing the industry is
credit risk because large-scale borrower defaults may even force a bank into bankruptcy.
A solvent banking system, ready and able to take
credit risk, would also remove a major source of deflationary pressure.
Compliance with approved policies, such as whether the entity adhered to established market and
credit risk limits, the reporting of any instances in which such limits were exceeded and whether appropriate remedial action was taken.
Identifies the technology vendors banks should shortlist when considering the purchase of a
credit risk management solution
Deep MI CRT builds on the success of our Agency Credit Insurance Structure (ACIS) program and is the first
credit risk transfer offering in the market with a flow-basis structure on loans purchased from our diverse lender base," said Kevin Palmer, senior vice president of
credit risk transfer at Freddie Mac.
