Financial Risk

Background: The financial risk has shown that bank needs to monitor credit risk, credit risk cost for Europe banks has skyrocketed and continue to rise in certain market. Bank can credit risk by early detect and effective mitigation of credit risk. There is difference effective of credit monitoring approach.

Issues: Success is highly depended on smooth implementation. There is issue for challenges of implementation

Methods of analysis: It first give a brief overview of related scientific literature about these factors are critical to smooth implementation. And then the methods of analysis is based on case study, it give example of monitoring process and responsibility. Case study research is good at understand a complicated problem or object. It can be extended experience or add strength to the known content through the previous studies. Case study emphasis on analysis the context of the limited number of events and conditions or their relationship. Researcher reflects sufficiently on the irrole not as data - makers, this paper has included qualitative as well as quantitative information so that the study would not be too biased. That is more concrete and quantitative method should have been presented as well.

Analysis:

It divides to classification, mitigation, and control step. Classification phase aims to identify and signal exposures that could run into problems, classification usually triggered by signals provided by an automatic early-warning system (EWS).there is numbers of things occur in this phase, such as An EWS regularly, the business analyzed the client portfolio, monitor and underwriting department. Mitigation's goals is to deploy the most effective risk-mitigation measure for client, activities include the business proposed risk, the monitoring unit approves and business implement the action plan, Control activity is typically performance by the monitoring unit, which would also decide a new client classification or determine a new action plan on the basis of the evolution of endangered position.

Alternatives: bank need to establish