append的ix 6 - credit risk management-translation.pptVIP

Appendix A – The Credit Risk Management Framework Monitoring Techniques Appendix B – The Credit Risk Management Process Credit Policy, Risk Appetite, Risk Assessment and Loan Administration Exposure monitoring addressing arrears rather than bad debt experience Good loan grade categorisation Bad debt loan grade categorisation Setting policy and risk appetite criteria thus determining the way in which loan assessments are carried out Loan balance allocation splitting up loan target balances by key indicators Bad debt analysis, showing past results of bad debt experience Strategic scenario planning to identify key indicators in the economy affecting lending performance Loan Application and Drawdown - Corporate Credit risk pricing – recognition of all elements of pricing including expected loss, capital to cover unexpected loss, operating/funding costs and the effects of transaction structure on the required risk premium Expected loss calculations – use of quantitative/qualitative rating systems linked to default experience, use of loss in the event of default statistics and calculation of exposure at time of default Rating systems – use of qualitative rating systems to rank clients according to default probability Traditional judgmental loan decisions – loan officers evaluate loan applications manually using experience and training to determine creditworthiness * Credit Risk Management Appendices A new operational framework is needed to deliver functional outputs with both control and proactive risk management objectives The functional outputs reflect CCB’s business requirements and current market good practices which form the basis of our Target Operating Model design. As far as CCB’s priorities are concerned the functions should: as a first priority put in place control objectives to ensure identification, measurement, monitoring, and control as a second priority introduce consistency The management of credit risk is a subject requiring continual upda