Bff5902

Analysis for Credit Risk of Commercial Bank

Student ID: 27482618
Name: Qiuyuan Ren

Table of Contents

Abstract …………………………………………………………………………… 3
1.0 Introduction…………………………………………………………………… 4
1.1 Introduction of Risk Management……………………………………………… 4
1.2 Introduction of Credit Risk ……………………………………….…………… 6
2.0 Case Study for Credit Risks-CAIBO company …………………………………6
2.1 Introduction of CAIBO Company …………………………….……………….6
2.2 Analysis of Risks Issues ………………………………….………….…………7
2.2.1 Management Risks ……………………………….………….………………7
2.2.2 Financial Risks ……………………………….………….…………………8
2.2.3 Product Risks ……………………………….………….……………………9
2.2.4 External Risks ……………………………….………….……………………9
3.0 Risk Register and Qualitative Analysis Matrix …………………….…………10
4.0 Recommendations and Conclusion…………………………….…………… 14
Reference List…………………………………………………………………… 15

Abstract
Now credit assets business is the main business of commercial banks operation, which is a significant approach for commercial banks to make profits. The aim of this essay is analyzing the credit risks of companies for commercial bank by case study of a Chinese firm-CAIBO Company.
This essay includes three main parts. The first part provides the theory of risk management and credit risk. The second part aim at analysing credit risks by a real case study of CAIBAO Company. In this part, four categories of risks including sixteen risk issues are analysed which followed by the risk register including a risk treatment schedule and risk action plan. In the final part, there are some recommendations response to the risk issues for example share the risk with a third party or encourage the company to buy some relative insurance. Finally, references are presented in the end of the passage.

Keywords: Risk Management, Credit Risk, Risk Register.

  1.0 Introduction
1.1 Introduction of Risk Management
Risk is defined by Australia/New Zealand Standard for risk management as a chance which can due to the gain or loss....