Credit Decisioning
From Open Risk Manual
Definition
Credit Decisioning (Also Credit Approval or Credit Granting Process) refers to the internal procedures followed by an organization in deciding to accept a certain Credit Risk, either as part of
- regular Credit Origination for banks and similar institutions where granting credit is part of the Business Model or
- incidentally, as part of engaging in other business which entails credit risk
Power to Accept Structures
Depending on the size and business model of the organization credit decisioning may involve a hierarchical structure of increasingly higher (senior) levels of approval
- Senior (central) management
- Regional management
- Branch management
- Individual officers
