Credit risk assessment: a challenge for financial institutions

by: Evangelos Kalapodas, Mary E Thomson

IMA Journal of Management Mathematics, Vol. 17, No. 1. (January 2006), pp. 25-46.

View FullText article

DOI, IngentaConnect

Reviews [Write a review of this article]

There are no reviews of this article

Find related articles from these CiteULike users

tuansoccer, QFRMC, QFRMC_ConsumerCredit (group)

Find related articles with these CiteULike tags

credit, judgemental, judgmental, method, models, portfolio, risk, scoring

Abstract

This study explores financial credit risk assessment. This is an important issue because there is currently no standardized method used by financial institutions for the assessment of credit risk. A critical evaluation of the most popular credit risk assessment methods—the judgmental method, credit-scoring and portfolio models—highlights a number of limitations when used on their own. Several interviewees confirm that credit risk assessment methods should be combined for effective credit risk assessment. Accordingly, the study proposes a framework for improving credit risk assessment, which combines the strengths of these methods and copes successfully with their limitations.

@article{2006_KalapodasThomson, abstract = {This study explores financial credit risk assessment. This is an important issue because there is currently no standardized method used by financial institutions for the assessment of credit risk. A critical evaluation of the most popular credit risk assessment methods—the judgmental method, credit-scoring and portfolio models—highlights a number of limitations when used on their own. Several interviewees confirm that credit risk assessment methods should be combined for effective credit risk assessment. Accordingly, the study proposes a framework for improving credit risk assessment, which combines the strengths of these methods and copes successfully with their limitations.}, author = {Kalapodas, Evangelos and Thomson, Mary E. }, citeulike-article-id = {439560}, doi = {http://dx.doi.org/10.1093/imaman/dpi026}, issn = {1471-678X}, journal = {IMA Journal of Management Mathematics}, keywords = {credit, judgemental, portfolio, scoring}, month = {January}, number = {1}, pages = {25--46}, posted-at = {2006-06-22 13:18:03}, priority = {0}, publisher = {Oxford University Press}, title = {Credit risk assessment: a challenge for financial institutions}, url = {http://dx.doi.org/10.1093/imaman/dpi026}, volume = {17}, year = {2006} }

RIS record

TY - JOUR ID - 2006_KalapodasThomson L3 - citeulike-article-id:439560 TI - Credit risk assessment: a challenge for financial institutions JF - IMA Journal of Management Mathematics VL - 17 IS - 1 SP - 25 EP - 46 PB - Oxford University Press SN - 1471-678X N2 - This study explores financial credit risk assessment. This is an important issue because there is currently no standardized method used by financial institutions for the assessment of credit risk. A critical evaluation of the most popular credit risk assessment methods—the judgmental method, credit-scoring and portfolio models—highlights a number of limitations when used on their own. Several interviewees confirm that credit risk assessment methods should be combined for effective credit risk assessment. Accordingly, the study proposes a framework for improving credit risk assessment, which combines the strengths of these methods and copes successfully with their limitations. KW - credit KW - judgemental KW - portfolio KW - scoring AU - Kalapodas, Evangelos AU - Thomson, Mary PY - 2006/01// UR - http://dx.doi.org/10.1093/imaman/dpi026 ER -

RIS BibTeX