Credit Risk: An Introduction

Despite all the innovation and complexity of recent decades, the fundamental business of banks remains the lending of money. The major risk is that of default when the money does not get repaid by customers.
This tutorial outlines how credit risk is generated by the business of financial institutions, as well as the structures these institutions should have in place to manage this risk. It describes in detail the entire credit risk lifecycle, from risk assessment through to ongoing risk reporting and monitoring. The tutorial also explains why it is important for banks to look beyond credit risk and take into account other risks such as market and operational risk when making credit decisions.