After completing this reading, you should be able to: Compare the credit scoring system to the credit rating system in assessing credit quality and describe the different types of each system. Distinguish between through-the-cycle and point-in-time credit rating systems. Describe…

After completing this reading, you should be able to: Define risk management responsibilities in an organization and explain the three lines of defense framework for effective risk management and control. Explain the processes that lead to risk-taking, including credit origination,…

After completing this reading, you should be able to: Define credit risk and explain how it arises using examples. Explain the distinctions between insolvency, default, and bankruptcy. Identify and describe transactions that generate credit risk. Describe the entities that are…