June 2013
Beginner
448 pages
14h 58m
English
Content preview from Advanced Credit Risk Analysis and Management
Become an O’Reilly member and get unlimited access to this title plus top books and audiobooks from O’Reilly and nearly 200 top publishers, thousands of courses curated by job role, 150+ live events each month,
O’Reilly covers everything we've got, with content to help us build a world-class technology community, upgrade the capabilities and competencies of our teams, and improve overall team performance as well as their engagement.I wanted to learn C and C++, but it didn't click for me until I picked up an O'Reilly book. When I went on the O’Reilly platform, I was astonished to find all the books there, plus live events and sandboxes so you could play around with the technology.I’ve been on the O’Reilly platform for more than eight years. I use a couple of learning platforms, but I'm on O'Reilly more than anybody else. When you're there, you start learning. I'm never disappointed.I'm always learning. So when I got on to O'Reilly, I was like a kid in a candy store. There are playlists. There are answers. There's on-demand training. It's worth its weight in gold, in terms of what it allows me to do.
9
Integrated View of Firm-Level Risks
In the today's world, as we have seen in Chapter 1, credit is pervasive and inexorable. From the local retailer/financier to multinational banks/manufacturers and multilateral financial institutions, credit holds sway. We have already seen external risks, industry risks, internal/company risks and financial risks. The credit risk model we discussed in Chapters 5 to 8 comprehensively covers all the significant components of credit risk at an entity or firm or company level. Now an integrated approach is required. Having covered all External, Industry, Internal and Financial (EIIF) risks, an integrated view is required to arrive at the correct credit risk.
9.1 RELEVANCE OF AN INTEGRATED VIEW
The obligor credit risk analysis calls for the critical examination or due diligence of the credit risk on a disaggregation basis (EIIF model/risks). However, the overall risk assessment is done on an ‘aggregation basis’ using the output derived from the study of each component of the EIIF model. The division of credit risk into EIIF risks facilitates in-depth study of the credit risk and covers all factors that impact the creditworthiness of a business firm. It should be borne in mind that it is seldom the case that a single condition causes failure, but rather it is a combination of factors. EIIF risks should be viewed together because often two or more EIIF risks work together to trigger a business collapse. For instance, the foray into new markets/ sectors ...
Become an O’Reilly member and get unlimited access to this title plus top books and audiobooks from O’Reilly and nearly 200 top publishers, thousands of courses curated by job role, 150+ live events each month,
and much more.
Read now
Unlock full access
More than 5,000 organizations count on O’Reilly
O’Reilly covers everything we've got, with content to help us build a world-class technology community, upgrade the capabilities and competencies of our teams, and improve overall team performance as well as their engagement.Julian F.
I wanted to learn C and C++, but it didn't click for me until I picked up an O'Reilly book. When I went on the O’Reilly platform, I was astonished to find all the books there, plus live events and sandboxes so you could play around with the technology.Addison B.
I’ve been on the O’Reilly platform for more than eight years. I use a couple of learning platforms, but I'm on O'Reilly more than anybody else. When you're there, you start learning. I'm never disappointed.Amir M.
I'm always learning. So when I got on to O'Reilly, I was like a kid in a candy store. There are playlists. There are answers. There's on-demand training. It's worth its weight in gold, in terms of what it allows me to do.