ITS ADMINISTRATION AND MONITORING CREDIT RISK. Developed by Ms.F.Econ. Felix Campoverde Velez. Business consultant and University Professor – University spirit Santo – Guayaquil-Ecuador the granting of credit has been constituted for many companies and financial institutions in the instrument of penetration and deepening of market, and consequently, the source of increased risk of asset impairment and loss; from there the waves of uncertainty when there is with the staff, or appropriate advice to mitigate the risks of credit accruals. Credit risk-is the possibility of loss due to the failure of the borrower or counterparty in operations, direct, indirect or derivatives involved non-payment, partial payment or lack of opportunity in the payment of the agreed obligations.
(The important thing is to set the value at risk (VR)) is important to banking or lending institutions need to properly judge the present and future solvency of their borrowers and manage (((efficiently its portfolio, taking into account that to grant credit may incur three types of risk: 1) risks of illiquidity, 2) risk of instrumentation or legal, and 3) risks of solvency. The first evokes the absence of money by the debtor for the payment, reflecting on the breach in order to not make the payment within the predetermined period or made after the date that it was programmed according to the contract. The second through the lack of caution or knowledge in the conclusion of agreements, contracts, preparation of promissory notes, bills of Exchange, or instruments of legal type which compel the debtor to pay (information asymmetry) and the third risk which could incur, by lack of real analysis and identification of the subject of credit; not have assets or collateral for the payment of its obligations. For this purpose it is necessary that adopt the following procedure for research and analysis of the credit, which will be reflected in a true Credit Scoring.(Qualification Record of customers).