credit risk

What Tools and Techniques are Used in Credit Risk Management?

Various tools and techniques are employed in credit risk management, including:
Credit Scoring Models: Quantitative models that predict the likelihood of default based on historical data.
Credit Default Swaps (CDS): Financial derivatives that transfer the credit risk of a borrower to another party.
Credit Risk Software: Specialized software solutions that help businesses assess and manage credit risk.
Stress Testing: Simulating extreme economic scenarios to evaluate the resilience of a credit portfolio.

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