Whats Credit Risk got to do with Biryani?

There are biryanis and then there is the biryani you love.

Same with Credit Risk.
Lending money is easy but getting the Credit Risk process right is where many falter.

Here is the secret recipe that makes your Credit Risk Management flavourful and worth relishing, for long

1) Use Quality ingredients. It matters
#RightOrigination: Provide absolute clarity to Business teams about their target segment. Garbage in garbage out.

2) Spice it up but just right

#Parameterisation and Judgemental balance: A Scorecard can do only as much. Parameterisation is ok for a quick bite(small ticket) but not if you are cooking for whole family (larger ticket)

3) Time to cook

Reasonable #TAT: Cant take 4 weeks to approve but chasing 1 day or 1 hr at the cost of due diligence is a non value add to both you and the customer. Cant undercook nor burn it by leaving it to simmer for long.

4) Garnish well

Post Disbursement #Monitoring: Disbursement is not the end of process. Its the start of relationship. Deferrals and Early Delinquency control is what ensures you can eat without an upset stomach.

#CreditRisk #Banking #StrategyExplainedInSimpleWords

Author Profile

Amit Balooni is the Founder of FrankBanker Consulting. In his 20 years+ banking and consulting career, he has worked with leading banks and now advises banks and Fintechs globally on SME, SCF, Credit Risk and Strategy. Through his workshops, he has trained more than 2500 bankers across mid and senior levels.