Page 33 - Risk Management Bulletin Jan- Mar 2022

RMAI BULLETIN JANUARY - MARCH 2022

cation or misinterpretation of risk data, resulting in Best Practices in Credit Risk Management
flawed credit decisions. Therefore, credit risk manage- Continuous evaluation of your data sources:
ment requires an effective technology-enabled mecha- Ensure that your model uses the best available
nism to facilitate swift and correct decision-making. and latest data from the most credible sources.
Automation can help speed up the process and im-
Protect yourself against financial fraud using the
prove the accuracy of credit decisioning. latest risk management platforms.
Maintain a proactive risk monitoring program
An Effective Collection Mechanism: It is easy to
Ensure that your credit risk scoring model is up-
sell on credit but difficult to collect on time. Collecting
to-date to keep up with the changes in the market.
timely payments from debtors is critical to ensuring
Automate the process: Automation reduces the
optimal cash ?ows. A robust debt recovery mechanism
time spent on peripheral tasks and helps your
sends a clear message to counterparties about the
Credit Risk team to focus on the areas that matter
importance of prompt payment. It also enhances a
the most.
company’s brand and reputation for conducting
prudent business. Modern debt collection solutions John Shedd evocatively wrote, “A ship in harbour is
leverage data, analytics, and technology to help safe, but that’s not what ships are built for.” Similarly,
predict, segment, and prioritise collections, thus it is impossible to grow a business without taking credit
helping in the reduction of the company’s overall Days risks, but it is important to do so prudently in today’s
Sales Outstanding (DSO). stormy and volatile global business environment.

RMAI Membership Benefits

We invite membership from Risk Management Professionals, Insurance and Finance Professionals, Insurers,
Bankers, Financial Companies, Intermediaries, Regulatory Bodies, Educational Institutes, Students and Persons
interested to learn and explore the area of Risk Management. By becoming a member you can play an active
role in promotion of Risk Management and enrich your knowledge to get optimum benefit of Risk
Management.
Get a Membership Certificate and ID Card.

Get quarterly news bulletin of RMAI.
Free copy of book Risk Management Principles & Practice worth 475 plus courier charges.
Free one year subscription of The Insurance Times magazine.

Get access to Online Resources on our Website – Research Reports, Articles, Videos, Case study etc.
Exchange news/views on Risk Management through our FORUM.
Contribute/share case study on Risk Management.

Get access to international developments on Risk Management.
Join our certification courses in collaboration with international institutes.
Discount on participation in conferences/seminars.

Attend online webinars.
Participate in research activities.
Under corporate membership your company can nominate 3 persons to access the resources of our website.
During the course of membership you can replace any person. For registering as member you can send a
brief profile of the company along with brief profile of nominated members with CV and photograph.

31