Credit Risk Management: Many Stakeholders to Manage

Balancing the needs of shareholders, who are looking to maximize returns, with those of other stakeholders is notoriously difficult. However, ignoring stakeholder needs can have an adverse effect on company performance and, in extreme cases, lead to company failure. Here we describe the various stakeholders that banks must manage, the importance of managing their often conflicting expectations, and some of the strategies and techniques for stakeholder management in the context of credit risk.