Credit Risk Management- Principles and Practices, Tools and Techniques

Overview
A strong credit culture:

Focuses the organization-everyone on the same page
Reduces organizational conflict and confusion-priorities
Minimizes need for rigid controls
Supports commitment to the organizational vision and mission
Adds to the organization’s bottom line and enhances shareholder value
In order to achieve the advantages of a strong credit culture, there must be a strong credit management. Achieving both means:

Employing a set of diagnostic credit discipline tools to identifyyour existing culture and deciding on whether to maintain it or move on to a stronger culture
Implementing the policies, processes, and procedures to implement your desired culture
Managing the supporting infrastructure of credit administration, credit policy, loan documentation, loan booking, etc.