Risk Assessment and Credit Analysis

For managers and directors

Financial management constitutes the heart of management in a financial institution.. As a Because if the damage occur, it will affect the entire banking system. Therefore, administrators need to be aware of risk management. The risk assessment must take into account that financial stability and asset management, investment (Portfolio Management) will result in the Bank's policy to control the risks of operating in a reasonable and controllable manner.

Guidelines to prevent the loss of investment then necessary to form a basic policy to prevent or minimise risks. The big investment banks then need an effective credit management, credit worthiness process to determining the value of credit, the qualifications and ability to repay the loan and when it is a credit to its customers, then a credit reviews and credit appraisal process is requires to prevent and / or fix credit problems before the issue is difficult to resolve. It will also need a problem loan management and credit collection technique in the system.

For operating officer

Because financial performance of banks concerned the financial stability and asset management investment (Portfolio Management). The bank then need a reasonable and controllable policy to control the risks in the operation and has to be develop continuously in a proper manner.

For this reason, staff development is essential and should be development continuously, especially additional technical skill for a long run performance that can be changes due to technological development and the nature of the business of customers in each industry.