Original Research
The process approach to the management of loan portfolios
Journal of Economic and Financial Sciences | Vol 3, No 2 | a341 |
DOI: https://doi.org/10.4102/jef.v3i2.341
| © 2018 Pieter G. Vosloo, Paul Styger
| This work is licensed under CC Attribution 4.0
Submitted: 01 July 2018 | Published: 31 October 2009
Submitted: 01 July 2018 | Published: 31 October 2009
About the author(s)
Pieter G. Vosloo, School of Economic Sciences, North-West University, South AfricaPaul Styger, School of Economic Sciences, North-West University, South Africa
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Many factors impacted the credit risk environment in the past decade, the most significant of which were the Basel II Capital Accord requirements. Foremost in the financial industry’s focus was, and still is, the implementation of these requirements and their associated outcomes. In the aftermath of the Basel II implementation, credit risk managers’ focus will return to understanding the portfolio philosophy in managing their credit portfolios. They will be required to adapt an integrated risk management framework, taking into account the interdependence of various building blocks, data fields and model outcomes. This paper develops and proposes a portfolio approach to the management of loan portfolios within an integrated risk management framework. The significance of this approach for the credit portfolio risk management environment and its role in maximising shareholder value are highlighted.
Keywords
integrated risk management framework; enterprise-wide risk management; credit risk management; process approach; credit portfolio; corporate governance; account life-cycle; Business Health Forum; loan portfolios; credit asset portfolios
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