Identifying Key Risks in Credit Management PPT

This PPT slide, part of the 92-slide Unlock the Power of Operational Risk Management PowerPoint presentation, outlines significant risks associated with credit, focusing on 2 primary categories: calculation errors due to incorrect input data and model methodology or algorithm errors. Each category includes a description of the risk, its drivers, implications for the business, and examples of past external events that illustrate the consequences of these risks.

For calculation errors, the slide identifies multiple drivers such as process design, implementation, and human capital issues like availability and expertise. These errors can lead to substantial financial repercussions, including billed overtime for external consultants, costs associated with restitution, regulatory fines, and legal liabilities. The mention of past events, such as the National Australia Bank incident, underscores the real-world impact of these risks, highlighting the difficulty in distinguishing between errors due to incorrect data and those stemming from other issues.

The second category, model methodology or algorithm errors, shares similar drivers and implications. It emphasizes the importance of robust processes and skilled personnel to mitigate these risks. The slide notes that these errors can also result in significant financial liabilities and regulatory scrutiny, echoing the concerns raised in the first category.

Overall, the slide serves as a critical reminder of the complexities and potential pitfalls in credit risk management. It encourages organizations to assess their processes, invest in human capital, and learn from past events to avoid similar pitfalls in the future. The structured approach to identifying risks and their implications provides a clear framework for executives to consider when evaluating their operational risk management strategies.

This slide is part of the Unlock the Power of Operational Risk Management PowerPoint presentation.

The Affinity Consulting Partnership is a global powerhouse of experienced consultants, specializing in technology and digital-driven change.

Download the Full Presentation

EXPLORE MORE SLIDES FROM THIS PRESENTATION

EXPLORE MORE PRESENTATIONS ON

Risk Management Process Design Operational Risk

Are you familiar with Flevy? We are you shortcut to immediate value.

Flevy provides business best practices—the same as those produced by top-tier consulting firms and used by Fortune 100 companies. Our best practice business frameworks, financial models, and templates are of the same caliber as those produced by top-tier management consulting firms, like McKinsey, BCG, Bain, Deloitte, and Accenture. Most were developed by seasoned executives and consultants with 20+ years of experience.

Trusted by over 10,000+ Client Organizations

Since 2012, we have provided best practices to over 10,000 businesses and organizations of all sizes, from startups and small businesses to the Fortune 100, in over 130 countries.

Flevy is the world's largest knowledge base of best practices.

Leverage the Experience of Experts.

Find documents of the same caliber as those used by top-tier consulting firms, like McKinsey, BCG, Bain, Deloitte, Accenture.

Download Immediately and Use.

Our PowerPoint presentations, Excel workbooks, and Word documents are completely customizable, including rebrandable.

Save Time, Effort, and Money.

Save yourself and your employees countless hours. Use that time to work on more value-added and fulfilling activities.

Read Customer Testimonials

"If you are looking for great resources to save time with your business presentations, Flevy is truly a value-added resource. Flevy has done all the work for you and we will continue to utilize Flevy as a source to extract up-to-date information and data for our virtual and onsite presentations!"

– Debbi Saffo, President at The NiKhar Group

"Last Sunday morning, I was diligently working on an important presentation for a client and found myself in need of additional content and suitable templates for various types of graphics. Flevy.com proved to be a treasure trove for both content and design at a reasonable price, considering the time I

... [read more]

– M. E., Chief Commercial Officer, International Logistics Service Provider

"FlevyPro has been a brilliant resource for me, as an independent growth consultant, to access a vast knowledge bank of presentations to support my work with clients. In terms of RoI, the value I received from the very first presentation I downloaded paid for my subscription many times over! The

... [read more]

– Roderick Cameron, Founding Partner at SGFE Ltd

"Flevy is our 'go to' resource for management material, at an affordable cost. The Flevy library is comprehensive and the content deep, and typically provides a great foundation for us to further develop and tailor our own service offer."

– Chris McCann, Founder at Resilient.World

"I have used Flevy services for a number of years and have never, ever been disappointed. As a matter of fact, David and his team continue, time after time, to impress me with their willingness to assist and in the real sense of the word. I have concluded in fact

... [read more]

– Roberto Pelliccia, Senior Executive in International Hospitality

"I like your product. I'm frequently designing PowerPoint presentations for my company and your product has given me so many great ideas on the use of charts, layouts, tools, and frameworks. I really think the templates are a valuable asset to the job."

– Roberto Fuentes Martinez, Senior Executive Director at Technology Transformation Advisory

"FlevyPro provides business frameworks from many of the global giants in management consulting that allow you to provide best in class solutions for your clients."

– David Harris, Managing Director at Futures Strategy

"Flevy.com has proven to be an invaluable resource library to our Independent Management Consultancy, supporting and enabling us to better serve our enterprise clients.

The value derived from our [FlevyPro] subscription in terms of the business it has helped to gain far exceeds the investment made, making a subscription a no-brainer for any growing consultancy – or in-house strategy team."

– Dean Carlton, Chief Transformation Officer, Global Village Transformations Pty Ltd.