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

See Also

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