oa Journal of Economic and Financial Sciences - The process approach to the management of loan portfolios
|Article Title||The process approach to the management of loan portfolios|
|© Publisher:||University of Johannesburg|
|Journal||Journal of Economic and Financial Sciences|
|Affiliations||1 North-West University and 2 North-West University|
|Publication Date||Oct 2009|
|Pages||171 - 188|
|Keyword(s)||Account life-cycle, Business Health Forum, Corporate governance, Credit asset portfolios, Credit portfolio, Credit risk management, Enterprise-wide risk management, Integrated risk management framework, Loan portfolios and Process approach|
Many factors impacted the credit risk environment in the past decade, the most significant of which were the Basel II Capital Accord requirements. Foremost in the financial industry's focus was, and still is, the implementation of these requirements and their associated outcomes. In the aftermath of the Basel II implementation, credit risk managers' focus will return to understanding the portfolio philosophy in managing their credit portfolios. They will be required to adapt an integrated risk management framework, taking into account the interdependence of various building blocks, data fields and model outcomes. This paper develops and proposes a portfolio approach to the management of loan portfolios within an integrated risk management framework. The significance of this approach for the credit portfolio risk management environment and its role in maximising shareholder value are highlighted.
Article metrics loading...