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 identify your 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.

Linkage between an effective credit risk management and a strong credit culture

Types of credit cultures and methods for identifying organization’s existing credit culture

Determining which credit culture best supports your organization’s risk appetite and risk tolerance

Tools for identifying, measuring, and managing portfolio transactional, intrinsic, and concentration risks inherent in loan portfolios

Examples of effective credit risk management practices and processes