The Research Of Credit Risk Measurement And Management

In financial world, credit risk is one of the oldest and the most important component of financial risk, the research on credit risk measurement and management have great practical significance at this stage, firstly, credit risk is the most common risk that financial organizations and other financial market participants faced with, moreover, in the recent 10 years, the intensifying competition between the bank services, the unceasing development of financial tools as well as the expansion of money market caused dissemination and proliferation of credit risk, on the other hand, the quantified measurement and management of credit risk has a widespread application, such as financial supervising, credit pricing, property disposition, achievements appraising rank evaluation, risk warning and so on. In addition, as a result of historical and the institutional reason, our country has many problems in the credit risk management, such as the weak foundation of credit risk management, incompletion of basic data system, the authenticity, timeliness, uniformity and insufficient of systematic data, the imperfection of financial and management information or rating and so on. The article includes five chapters as follows:Chapter 1 briefly introduced the goal and significance of this writting as well as the overall mentality of article.Chapter 2 explained some related conceptions of credit risk and microscopic mechanism of the formation of credit risk as well as the development of credit risk models.Chapter 3 compared and analyzed some main credit risk models, including the expert method, rating method, CreditMetrics, KMV, Credit Portfolio View and so on. At the end of this chapter, it lists the advantages and disadvantages of each model. Most of these techniques are still new to our country, indicating we are behind in this field.Chapter 4 analyzed present development of our country's credit risk measurement and management, including the problems of our country's credit risk management and the reasons of formation of credit risk in our country's financial market.Chapter 5 proposed some own viewpoints revolved these questions, got some preliminary ideas on quantified management of credit risk.including: establishing thegood credit environment and the standard credit rating system, developing and utilization advanced credit risk measurement method, improving internal control of credit risk management and setting up good credit culture.