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Credit Risk Appetite, Strategy and Credit Risk Limits
== Credit Risk Appetite, Strategy and Credit Risk Limits == ...al governance, institutions should apply further conditions in relation to credit granting and monitoring, as set out in this section. <ref>EBA, Guidelines o

2 KB (296 words) - 12:49, 3 June 2020

Page text matches

Over-Fitting
For statistical models a good strategy is to monitor the [[Akaike Information Criterion]] [[Category:Intrinsic Model Risk]]

572 bytes (77 words) - 21:02, 11 September 2020
Risk-Neutral Pricing Models
...e value derives from a primary traded asset). The models determine hedging strategy and upfront PnL recognition. ...of market risk and future credit exposure in assessing counterparty credit risk.

464 bytes (62 words) - 13:58, 19 November 2019
Forbearance
...denote a situation where a [[Loan | lending contract]] or other bilateral credit relationship has become problematic (in the sense of unexpectedly deviating Forbearance is a common strategy for [[Credit Risk Management]] of banking products. It is a distinct feature of bank based le

6 KB (840 words) - 18:21, 2 March 2023
Portfolio Management
* the nature of the portfolio and its constintuent instrumetns (e.g. credit portfolios, securities, derivatives etc.) ...ntities. This domain is characterised by the direct underwriting of credit risk, ongoing bilateral relationships

3 KB (437 words) - 13:56, 29 May 2022
Credit Portfolio Management
...characteristic of credit portfolio management activities is that [[Credit Risk]] is assessed and managed not on a standalone basis but in an aggregate, po == Credit Portfolio Management Approaches ==

7 KB (943 words) - 14:41, 15 November 2021
Limit framework
...assume quantifiable risks) to govern in a quantitative manner the maximum risk [[Exposure]] permitted for an individual, trading desk, business line etc. ...| risk limits]] defined by the framework is consistent with the degree of risk the firm is willing to accept while pursuing its business model

6 KB (837 words) - 13:38, 5 February 2020
Credit Risk Management
...f [[Credit Risk]], most typically (but not necessarily) in the context a [[Credit Portfolio]]. Credit Risk Management is a superset of [[Credit Portfolio Management]], with the later term being used when intending to pl

7 KB (914 words) - 16:31, 3 June 2020
Qualifying Criteria For Hedge Accounting
...the hedging relationship and the entity’s risk management objective and strategy for undertaking the hedge. ** The effect of credit risk does not dominate the value changes that result from that economic relation

1 KB (169 words) - 18:50, 28 January 2020
IFRS 9 Model Validation
...st be in place to appropriately validate models used to measure [[Expected Credit Loss]] (ECL) under the [[IFRS 9]] standard. ...FRS 9 these papers establish the necessary steps to ensure that the credit risk assessment and measurement models are able to generate accurate, consistent

6 KB (893 words) - 12:53, 16 September 2021
NPL Strategy
An '''NPL strategy''' encapsulates the overall objectives and approach for any entity managing ...zed distressed asset investors) or not (e.g. typical banks), the nature of credit assets (retail versus wholesale) etc.

4 KB (481 words) - 12:40, 23 January 2021
NPL Risk Factors
...recover the [[Contractual Cash Flows | scheduled cash flows]] of a loan or credit product ...dit Risk]] of ''performing exposures'', whereas other might be specific to credit obligations that are already non-performing

4 KB (608 words) - 16:57, 1 September 2020
NPL Life Cycle
...rrower segmentation, which ultimately determines the most suitable workout strategy for the borrower. ...financial position of the borrower before establishing a suitable workout strategy. In addition, the bank should seek options to improve its position (for ins

3 KB (414 words) - 18:17, 2 March 2023
Credit Risk Monitoring
...Risk]] to assess the ongoing development of the borrower (obligor) credit risk profile ...[[Data Infrastructure]], to ensure that information regarding their credit risk exposures, borrowers and collateral is relevant and up to date, and that th

6 KB (870 words) - 18:10, 4 June 2020
Non-Performing Loan Valuation
NPL assets are [[Liquidity Risk | illiquid assets]] held by banks or other credit granting institutions as a byproduct of their core lending businesses. Cur ...ts that are formalized into ''subjective'' projections of how NPL specific risk factors will materialize and therefore affect the realisation of contractua

16 KB (2,148 words) - 11:27, 18 October 2020
Gone Concern Valuation
The approach involves estimating the underlying risk factors (uncertainties) and / or structural elements ...ction eligible under CRR, where the provider of the protection is rated at Credit Quality Step 3 or above should be acceptable.

4 KB (676 words) - 18:40, 24 January 2021
Best Practices in Credit Portfolio Management
== Best Practices in Credit Portfolio Management == ...oosely on the original publications of IACPM<ref>IACPM, Sound Practices in Credit Portfolio Management, 2005</ref>, the BIS<ref>BIS, Range of Practices and I

12 KB (1,494 words) - 20:11, 11 March 2024
Capital Management
...s where maintaining [[Capital adequacy]] via the procurement of adequate [[Risk Capital]] is usually a key condition for being able to operate * the firm's assets (in particular their risk profile)

1 KB (151 words) - 18:46, 28 July 2018
Risk Management Jobs
...k is formally underwritten (Banking, Insurance) which singles out specific risk types as part of the "business-as-usual" and distinct from other potential ...role, external) is not relevant and is not indicated. E.g., there is no ''Risk Consultant''.

6 KB (815 words) - 18:57, 20 November 2020
Credit Portfolio Strategy
...stment strategy, hedging strategies, workout strategies) that help shape [[Credit Portfolio Management]] activities ...onents of any specific strategy reflect how it addresses the life cycle of credit assets:

2 KB (259 words) - 13:59, 15 November 2021
SME Credit Risk Literature
== Literature List of SME Credit Risk == ...terature, with a focus on methodologies for the quantification of [[Credit Risk]] at the various stages of [[SME Lending]].

8 KB (1,007 words) - 13:00, 7 September 2020
SME Credit Score Factor
...n the construction of a numerical [[SME Credit Score]] as part of an [[SME Credit Scorecard]] building procedure. These factors typically serve as ''predicto ...it Data]]). Therefore a grouping of data inputs that can be used as credit risk factors into conceptual categories is useful as an organizing principle.

10 KB (1,333 words) - 21:00, 31 March 2021
Cut-Off Score
...ce Level'') that is used to support the [[Credit Decisioning]] step of a [[Credit Origination]] process. ...uces a binary indicator (Yes/No) which can then be used as-is to trigger a credit decision (e.g., reject / accept), in which case we are talking as a ''Hard

875 bytes (126 words) - 21:01, 11 September 2020
Customer Segmentation
...entation''' (also ''Portfolio Segmentation'') denotes the splitting of a [[Credit Portfolio]] (of any [[Financial Product]] portfolio more generally) into sm ...important tool toward identifying sub-sets of clients that exhibit similar risk characteristics. Segmentation can be either ''heuristic'', based on existin

2 KB (281 words) - 16:38, 10 February 2023
How to Map Climate Risk to the Open Risk Taxonomy
== How to Map Climate Risk to the Open Risk Taxonomy == ...new form of risk as they are new (or more sharply defined) [[Risk Factor | risk factors]].

8 KB (1,086 words) - 12:25, 24 August 2023
Portfolio Investment Strategy
...jectives. It denotes the set of concrete plans and constraints (investment strategy, hedging strategies) that help shape overall [[Portfolio Management]] activ ...n the mandate and business model of the organization. A concrete Portfolio Strategy might be specified using the following components:

2 KB (242 words) - 13:40, 10 June 2021
Lender Right
...ne health, unemployment etc.). - this is the Borrower mitigating their own risk. Prevents foreclosure. Similar to general sickness etc. Where the lender ch

3 KB (450 words) - 11:21, 8 October 2019
Credit Portfolio versus Loan Portfolio
== Credit Portfolio versus Loan Portfolio == ...varies. A loan portfolio is best understood as a ''subset'' of the broader credit portfolio class that only involves loans.

1 KB (207 words) - 11:18, 5 October 2021
ESG Criteria
* tax strategy ...Risks]] in their credit risk appetite and risk management policies, credit risk policies and procedures, adopting a holistic approach <ref>EBA, Guidelines

3 KB (355 words) - 14:56, 11 August 2021
Credit Scorecard Taxonomy
== Credit Scorecard Taxonomy == There are many [[Credit Scorecard]] types. The following categories break them down to the main cla

3 KB (359 words) - 21:01, 11 September 2020
EBA Guidelines on Loan Origination and Monitoring
...r to ensure that institutions have robust and prudent approaches to credit risk taking, management and monitoring. == 4. Credit Granting Governance ==

8 KB (957 words) - 15:48, 31 March 2022
Management Responsibilities in Credit Granting
== Management Responsibilities in Credit Granting == ...s referred to in the EBA Guidelines on internal governance, in relation to credit granting, should<ref>EBA, Guidelines on loan origination and monitoring EBA

2 KB (262 words) - 11:29, 3 June 2020
Credit Risk Culture
...that determine a credit institution's commitment to and style of [[Credit Risk Management]]. Institutions should develop a credit risk culture as part of the overall risk culture through policies, communication and staff training, in accordance w

2 KB (332 words) - 14:49, 24 April 2024
Credit Risk Appetite, Strategy and Credit Risk Limits
== Credit Risk Appetite, Strategy and Credit Risk Limits == ...al governance, institutions should apply further conditions in relation to credit granting and monitoring, as set out in this section. <ref>EBA, Guidelines o

2 KB (296 words) - 12:49, 3 June 2020
Credit Risk Policy
...rganization's perception and attitude towards the range or [[Credit Risk | credit risks]] it faces and desires to manage The Credit Risk policy is a key part of an organization's [[Risk Framework]]

7 KB (921 words) - 22:02, 25 October 2021
Leveraged Transaction
Indicatively<ref>ECB, Guidance on leveraged transactions</ref>, a credit institution is expected to consider as a leveraged transaction any transact * all types of loan or credit exposure where the borrower’s post-financing level of leverage exceeds a

3 KB (396 words) - 14:49, 3 June 2020
Environmentally Sustainable Lending
investment, including equity, debt, guarantee or a risk management tool, issued in exchange for the delivery of financing activitie ...ding policies and procedures, covering the granting and monitoring of such credit facilities.

3 KB (390 words) - 12:42, 5 June 2020
Credit Risk Skills
...e available to the staff of an organization in the context of its [[Credit Risk Management]] ...d to credit risk taking and, in particular, credit decision-making, credit risk management and internal control.

2 KB (209 words) - 16:36, 3 June 2020
Remuneration Framework
...is particularly important in the context of [[Internal Governance]] and [[Risk Management]] in view of the incentives it generates. == EBA Requirements in Credit Granting Context<ref>EBA, Guidelines on loan origination and monitoring EBA

2 KB (307 words) - 16:52, 3 June 2020
Corporate Credit Risk Analysis
'''Corporate Credit Risk Analysis''' denotes [[Credit Risk Analysis]] as it applies to medium-to-large sized enterprizes. ...cation is in line with the institution’s credit risk appetite, policies, credit-granting criteria, limits and relevant metrics, as well as any relevant mac

12 KB (1,843 words) - 14:46, 1 September 2020
SME Credit Risk Analysis
'''SME Credit Risk Analysis''' is the specialization of [[Credit Risk Analysis]] to the particular context of [[SME Lending]]. General requirements for the analysis of SME Credit Risk are set in<ref>EBA, Guidelines on loan origination and monitoring EBA/GL/20

11 KB (1,537 words) - 22:17, 31 March 2021
Monitoring of Credit Exposures and Borrowers
...onitoring of Credit Exposures and Borrowers''' is a subset of the [[Credit Risk Monitoring]] framework that focuses on the monitoring of [[Outstanding Amou ...h the conditions set at the point of credit granting, such as adherence to credit metrics and covenants.

3 KB (364 words) - 18:22, 4 June 2020
Early Warning Indicators for Credit Risk
...g Indicators]] that are used specifically for the anticipation of [[Credit Risk]] events. ...ty, profitability, market and macroeconomic metrics. In the context of the risk control framework, an institution can use progressive metrics (“traffic l

6 KB (922 words) - 11:13, 22 December 2020
ESG Factors
...individual.<ref>EBA Report: On Management and Supervision of ESG Risks for Credit Instituions and Investment Firms, EBA/REP/2021/18</ref> ...institutions through their counterparties and invested assets are called [[Risk Transmission Channel | ''transmission channels'']].

4 KB (474 words) - 16:14, 15 January 2023
Risk Committee
...strategy, and for overseeing senior management’s implementation of that strategy. <ref>BCBS, Principles for enhancing ...ee responsibities include capital and liquidity management, as well as for credit, market, operational, compliance, reputational and other risks of the insti

949 bytes (124 words) - 14:39, 24 November 2020
ISCO Occupation Group 2412.6 Investment Fund Manager
...nies; working closely with the investment analyst. This occupation manages strategy and does not always work with relations between shareholders or investors. * Manage Financial Risk

2 KB (298 words) - 12:11, 26 February 2021
ISCO Occupation Group 1221.2 Banking Products Manager
...mprovements. Banking products managers assist with the sales and marketing strategy of the bank. * Analyse Financial Risk

2 KB (260 words) - 15:52, 31 March 2022
ISCO Occupation Group 2412.4 Financial Planner
...g, risk management and insurance planning, and tax planning. They advise a strategy tailored to the client's needs. They ensure the accuracy of bank and other * Maintain Credit History Of Clients

3 KB (320 words) - 12:15, 26 February 2021
ISCO Occupation Group 3312.2 Credit Adviser
...edit portfolio. Credit advisers also have expertise in debt management and credit consolidation. * Examine Credit Ratings

2 KB (302 words) - 12:23, 26 February 2021
BCBS 80
...losure relating to key elements of the New Basel Capital Accord - capital, risk exposure and assessment and capital adequacy - will assist participants in ...>Market Risk Internal Modelling</strong>; disclosure of the type of market risk models used (e.g. VAR), the model's parameters, the bank's policies and pro

6 KB (872 words) - 11:46, 26 March 2021
BCBS 90
...ritisation activities, credit risk, credit derivatives, other derivatives, risk diversification, accounting and presentation policies, and other risks.</p> ...f the information increases, with information about credit risk modelling, credit derivatives, and securitisation disclosed by fewer than half of the banks.

7 KB (1,011 words) - 11:46, 26 March 2021