In this article I provide a brief outline of two key areas where credit risk review and risk management conjoin directly to impact a financial institution’s capability to conduct business and manage a thicket of regulations. Drawing on my own experience in working with our clients, I will offer an overview of what risk management entails, whether conducted internally or through external resources.

To get a sense of a typical approach involved in evaluating credit risk and the concurrent role played by risk management, I will outline the following areas: Quantity of Risk and Quality of Risk Management.

In a penultimate section, entitled Implementing Risk Management, I offer some guidance about how to use credit risk information effectively to fortify a financial institution.