Giving out loans and not getting back the amount at due time has been a very common practice within the premises of a bank and other lending companies. If there is a credit loan there has to be defaulters. Now, the probability of this inability of a debtor to repay the loan amount is known as credit risk; it is considered a risk because it is due to this that the financial condition of a bank is at jeopardy.
Therefore in order that these risks can be anticipated and handled and mitigated on time so as to incur as minimum loss as possible is known by the name of credit risk management. There are many individuals who are familiar with this concept yet not all are well equipped to handle such things. It is hence that help pertaining to this matter should be availed from extremely experienced people like Dessa Bokides who has over two decades of experience in the financial world.
She has been the Global Head and Managing Director of Rating Advisory and Capital Strategy Group as well as the managing director of a Deutsche Bank. She has recently been the Executive Vice President at ProLogis and the Chief Financial Officer of the same company. She also headed long range financial planning, worldwide pensions, enterprise risk management and corporate budgeting at a company named Pitney Bowes.
Individuals or companies with her expanse of knowledge about the finances are very aware of the challenges that are liable to crop up in the endeavor to a successful credit risk management.
- The most common problem that crops up is inefficient data management. Often the right data is not accessed when it is required and this causes a lot of delay that lead to further problems.
- The lack of group wide risk modeling framework does not allow a bank to generate complex yet meaningful risk measures.
- The efficiency of a bank’s employees is negatively affected because of the constant rework that has to be dome due to inability to change model parameters easily.
- The risk tools by which the credit risk management team would work are also insufficient. The portfolio concentrations can only be identified by robust risk solutions. Also the re-grading of portfolios cannot be done often enough so that risk is effectively managed because of the same reason.
- The manual spread sheet based reporting tires the analysts and the IT professionals and find the act of reporting rather cumbersome. This again lowers the proficiency as well as the efficiency of the credit risk management.
The challenges of a successful credit risk management are many as you can see, but surely full determination and of course knowledge and experience counts a lot in this field. Dessa Bokides is a great example for all those working in the financial world that with sheer hard work and determination all obstacles can be overcome and every risk managed in the best possible way.