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Tag: Lending

What is a Credit Risk Assessment?

A credit risk assessment is a financial litmus test, evaluating the likelihood of a borrower defaulting on a loan. It combines data analysis with expert judgment to safeguard lenders and ensure responsible lending.

steps to reduce credit risk in lending

Mitigating credit risk in lending involves robust borrower assessments, diversifying loan portfolios, and implementing stringent credit policies. Embrace technology for real-time monitoring and foster strong client relationships for proactive risk management.