Credit Risk Management
To manage the amount of credit risk, there are a lot of things to be considered. Analysis of status quo -what kind of transactions we do now? -where do we operate? -who do we deal with? -when and how do we chose counter parties and why it is justifiable? -how do we measure the amount of credit risk? -how often monitor and review it? -what is needed more to improve the status quo? what's the meaning of "improving"?To construct the credit risk management scheme, in my view, management sets some rough ideal situation based on mission, vision and strategy and then, analyze the status quo and figure out the gap between them. As a task force deal with this matter, more ideas come up usually. In that case, you simply put them into the To Do List to break it.Analysis point of view-Countries(China, India, ASEAN, US, Europe, Japan, Middle East, South America, Africa)-Industries(Mil, Car, Oil, Smelter, EPP, IPP)-Customers(Traders, Manufactures, Mines, Brokers)-Type of transactions(Physical, Future, Lease)-Markets(Currency, Commodity, Stock, Bond)-Hedging scheme(Insurance,Collateral,Financial products)The most important thing, I think, is keep thinking and collecting information as much as possible until you reach some certain point which makes you feel comfortable to keep up with the rapid and radical movement of world.Be sensitive of using time, otherwise you reach nothing.It's very tough but there is some sort of world consensus that people need to struggle certain period of time to break through to reach new stage.