Credit Risk Appetite: Customer Risk
Interactive

Credit Risk Appetite: Customer Risk

Intuition Publishing
Updated Sep 25, 2020

Aggregation rules determine entities that form a customer group. Customer concentration limit compliance is based on total credit limits for a customer group. Credit risk appetite varies considerably by customer type and the package of credit facilities provided to a customer must take into account compliance with credit risk appetite. Even where credit risks are deemed acceptable, proposals that are within credit risk appetite may not be approved due to other appetite considerations. In the context of credit risk appetite, we describe in detail the key aspects of customer risk.