Credit Decisioning

From Open Risk Manual
(Redirected from Credit Approval Process)


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

See Also