How to promptly manage credit risks in a rapidly changing economic environment

In modern conditions credit risks are considered to be one of the most significant financial risks, and their management is becoming increasingly popular from the point of view of both theory and practice. In spite of the fact that nowadays credit institutions have powerful tools of risk management, automation and strict system of external control, credit risk management is of special interest, as it threatens creditor with financial losses and even bankruptcy. Therefore, it is necessary to check the creditworthiness of the borrowers and require sureties or collaterals to secure the repayment of credit funds when granting loans. However, borrowers are not always able to provide sufficient guarantees to secure credit transactions, and creditors to take the risk of non-repayment or non-payment of interest by debtors and to form a system of counteraction to credit risks and their consequences. Therefore, with the development of credit relations and the formation of a competitive environment in various spheres of the economy, the role of the system of preventive measures to protect credit transactions increases. This determines the relevance of considering the issues of credit risk assessment in the organization.