Challenges in automating commercial
credit risk management
Financial institutions seeking to invest in enhanced risk management of
commercial credit face significant challenges. While outwardly
straightforward, commercial credit is one of the most complex areas of
banking. As a result, it is not unusual for financial institutions to
underestimate the scope or challenges involved in the automation of
originating, monitoring and managing commercial credit.
Discussing these enhancements is more important than ever.
Default rates on commercial credit facilities are at their highest rate in
almost two decades, and automation is an effective tool to help banks
improve transparency, enhance management control and increase
The purpose of this paper is to break down the complexities of the
commercial credit process and provide a clear picture of the challenges
and potential benefits of automation.