Credit Risk Customer Management: Aggregation
Interactive

Credit Risk Customer Management: Aggregation

Intuition Publishing
Updated Sep 25, 2020

Aggregation is a relatively straightforward mathematical process. It can be applied to a single customer or customer group and is applied separately for different risk types. Correct aggregation is required to understand and manage customer risks, determine risk appetite compliance and applicable credit authorities, and meet regulatory requirements. Here we discuss the importance of aggregation, the various aggregation rules, and some of the challenges associated with applying aggregation rules.