credit risk management committee

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Tags: banking, loans

The purpose of the credit risk management committee is to address issues relating to credit policy and procedures. These policies and procedures should encompass clear guidelines regarding borrower analysis and approval, credit limits and diversification, and risk mitigation. Risk measurement, monitoring, and control should be established, keeping accurate records, stress testing, managing problem credits, maintaining a sound information system, and continually gauging and assessing risk.
(source: http://www.bu.edu/bucflp/laws/risk-management-guidelines-for-microfinance-institutions-2/)

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