Credit Risk Evaluation

In the environment in which a bank functions there are many risk sources that determine the reduction of the profitability. These risk sources must be attentively identified, measured and taken into consideration for the elaboration of a bank’s general strategy of monitoring and disproof of the risks. The risk is generally defined as: the adverse effect that certain distinct incertitude sources exert over the profitability. The measurement of the risk requires that both the incertitude and the potential adverse effect over the profitability be surprised and evaluated.