It is a strategy of deciding how much credit ought to be given to customers or debtors and guaranteeing compliance with the credits terms which might be set. To consider the effect of poor credit management to financial institution misery in Nigeria. Banks make money by lending cash to debtors and charging some rates of interest.
A key part of stopping risks from occurring is with the ability to spot after they’re about to happen. Identify any triggers or warning signs for each risk and guarantee they’re clearly documented and embedded into related processes. At this point, you should also agree your risk tolerance levels and danger targets to define the utmost and optimum level of risk you wish to take earlier than taking action. Spend time figuring out the precise dangers relevant to your corporation. Some risks could also be business-wide, while others could solely apply to sure sectors …