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This lesson is a part of the course Credit Risk Management
We have seen till now that a credit officer’s tasks include daily monitoring of limits and provisions and scanning other risks and their impact. There are some tasks which he needs to undertake only on an annual basis, but are important nevertheless.
Strategy Review: A credit officer reviews strategic positions on a daily basis, but review of the strategy the bank is following is usually done once a year. These questions could include – do we want to be in X business? Do we need to play the role of the originator more and arbitrager less? Naturally these questions are many a time met with resistance. Answering these questions though keeps the team vigilant about the direction the business is taking and if it is on course.
