Read Why do business professionals choose ready-to-use KPIs? to find out the answers to these questions:
Credit risk is concerned with calculation of the money value that is at stake in case the debtor fails to make payments in time.
Such an assessment of Credit Worthiness obligor-s risk is immensely valuable for those companies that are into providing loans payments to the needy ones. The rate of interest charged is a function of risk associated with the borrower. This is to say that the company distinguishes among its customers by gauging the extent to which risk is attached with them.
Stating it the other way round, credit risk is about making sure that the financial health of the customer base that is maintained by the company is sound enough not to create troubles in future when it comes to making payments.
Such documents that show credit history is useful for the customers also as people can use those as a means to prove their past records regarding credit status of theirs. It eases out the job of both lender and borrower when the issue relates to decision of whether a given person should be handed over the financial help or not.
A scorecard that sums up the factors involved in default probability of customers in terms of indicators is a useful instrument.
Such credit score profile of clients plays a significant role in helping the assessor decide for the 'financial funding' subject.
This is the actual scorecard with Credit Risk Performance Indicators and performance indicators. The performance indicators include: page_metric_keywords.
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