2. • Credit Risk is the risk of default on a debt that may
arise from a borrower failing to make the required
payments
• Credit risk management is the process of mitigating
these losses by understanding the banks loan loss
reserves and its capital
• BI solution enables you to assess credit portfolio
risks accurately, reduce financial losses, and speed
up the processing of reporting data.
Motivation
3. KPIs
• Profit per region
• Profit per product
• Profit Growth per region
• Profit Growth per product
• Customer growth per region
• No of customers per region
• No of customers per product
• Average credit risk of customers
• Allocation reserve per region
• Allocation reserve per area
• Allocation reserve per branch
Banks capital = difference between banks assets and liabilities ; net worth of the bank
Loan loss reserves = accounting entries banks make to cover estimated losses on loan