Question

Briefly explain how banks manage credit risk ?


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Answer 1

Answer:

Thoroughly check a new customer's credit record. ...

Use that first sale to start building the customer relationship. ...

Establish credit limits. ...

Make sure the credit terms of your sales agreements are clear. ...

Use credit and/or political risk insurance.

Answer 2

Answer:

7 Ways to manage credit risk and safeguard your global trade...

• Thoroughly check a new customer's credit record. ...
• Use that first sale to start building the customer relationship. ...
• Establish credit limits. ...
• Make sure the credit terms of your sales agreements are clear. ...
• Use credit and/or political risk insurance. ...
• Use factoring. ...
• Develop a standard process for handling overdue accounts.

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