Well understand about Risk Control in Finance(II)

Credit Risks

Credit risk management is an integral part of the overall risk management framework of financial institutions. It is fully responsible by the credit risk management department under the risk management committee. The credit risk management department is directly responsible to the global risk manager, Steel Sheet who then reports to the CEO in turn.


Credit risk management departments implement credit regulation and management worldwide through professional evaluation, quota approval, supervision and so on. When examining credit risk, the credit risk management department should balance the relationship between risk and return, and forecast the actual and potential credit exposure.check here


In order to optimize credit risk management worldwide, credit risk management departments have established various credit risk management policies and control procedures.

Operational risk

Operational Risk Management Strategy: As intermediaries of financial services, check here financial institutions are directly exposed to market risks and credit risks, which arise from normal activities. In addition to market risk and credit risk, financial institutions will also face indirect risks related to operation, business and logistics, which can be attributed to operational risk.


In an environment of rapid development and more and more globalization, when the volume of transactions in the market, the number of products expands, and the degree of complexity increases, the possibility of such risks is on the rise. These risks include: business/settlement risk, technical risk, legal/documentation risk, financial control risk, etc. Most of them are related to each other, so the actions and measures taken by financial institutions to monitor these risks are also comprehensive.

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