Start by describing the old way of setting credit limits—manual, periodic reviews, and static numbers that often fail to reflect real-time changes in a counterparty’s risk profile or market conditions. Explain how fixed limits can be misleading and lead to either a high risk of breach or an under-utilization of capital. Start by describing the old way of setting credit limits—manual, periodic reviews, and static numbers that often fail to reflect real-time changes in a counterparty’s risk profile or market conditions. Explain how fixed limits can be misleading and lead to either a high risk of breach or an under-utilization of capital. Start by describing the old way of setting credit limits—manual, periodic reviews, and static numbers that often fail to reflect real-time changes in a counterparty’s risk profile or market conditions. Explain how fixed limits can be misleading and lead to either a high risk of breach or an under-utilization of capital.
Why Dynamic Limit Setting is the Future of Credit Risk Management
