The World of Credit Risk Management According to GJ

Target group of this book is primarily for people who intend to master the ins-and-outs of corporate credit management, thereby primarily focussing on wholesale, commercial banking and SME corporates. However, the book will be of excellent value as well for those who want to broaden their horizon (e.g., staff in Operations, Legal, Finance, Financial Markets, Treasury, Research), and get a better understanding what drives the credit process and credit decision that shapes a large part of the bank’s balance sheet. Many books about credit risk management continue to stick to the concept of 5 C’s, thereby referring to character, capacity, condition, capital, and collateral. Whereas I have nothing against this approach, it obviously is insufficient to manage a portfolio in modern times. The reader of this book will gain insight in a more dynamic approach towards lending, which enables the reader to apply enhanced principles of credit in this ever-changing risk environment. In this book, I will also highlight how human aspects can have such a strong impact on credit process and credit portfolios. Not just to illustrate valid learning points, but even more to show how applying certain credit risk fundamentals in real life is less black & white than it appears to be in most textbooks. I am convinced that a solid understanding about the fundamentals of credit combiner with their ability to apply this in a proper context will enable corporate bankers to have an educated discussion on matters related to credit risk management. It is this basic thinking that should be the foundation for a more balanced risk culture and allowing the banker to be smart about taking chances. Furthermore, a dedicated chapter is included to explain the principles behind a proper debt restructuring for…