In this thought leadership piece, we talk about how shipping blockages far from Africa can push sound borrowers into default, and argue that lenders can act early by linking free shipping data to borrowers’ trade routes. We draw on BIS research, IMF PortWatch data and Northern Corridor figures.
Credit RiskThis is the first article of the 5-part Credit Risk Management in SME and Corporate Lending series. We begin by showing why effective credit risk management starts with precise measurement, rather than intuition or anecdotal judgment.
Credit RiskThis is the second article of the 5-part Credit Risk Management in SME and Corporate Lending series. We delve into the limitations of relying solely on provisions, and how to anticipate and plan for unexpected losses. Risk management should be proactive, not reactive.
Credit RiskThis is the third article of the 5-part Credit Risk Management in SME and Corporate Lending series. We shift focus to capital management, and demonstrate how capital should guide decision-making and signal where risk-adjusted discipline is required, rather than being seen as a mere limit on lending.
Credit RiskThis is the fourth article in our 5-part Credit Risk Management series. We explore RAROC as a key measure of whether lending decisions create value, helping lenders distinguish between safe lending and genuinely profitable, sustainable strategies.
Credit RiskFinally, the series concludes with a discussion on risk appetite, presenting it as the operating system that aligns strategy, execution, and governance, to ensure responsible growth across the portfolio.
Credit RiskWelcome to this series of the credit risk concepts where we explore key quantitative techniques that support pricing, capital planning, and performance measurement, simplifying core elements like PD, LGD, and EAD for practical use in lending institutions.
Credit RiskThis is the first article in our Credit Risk Management series, introducing Probability of Default (PD), Loss Given Default (LGD), and Exposure at Default (EAD), and how they help quantify potential losses and support better credit decisions.
Credit RiskThis is the second article in our Credit Risk Management series, introducing Expected Loss and its role in measuring average credit losses. We explain how EL is calculated and how it connects to Unexpected Loss and risk variability.
Credit RiskThis is the third chapter of our credit risk series where we build on the previous discussion of expected loss, introducing unexpected loss, which is the more volatile, less predictable side of credit risk.
Credit RiskThis is the fourth chapter of our Credit Risk Series where we explain how credit risk managers can go about quantifying capital requirements for individual loans, using global standards like Basel to match capital to risk.
Credit RiskThis final article in our Credit Risk Management series introduces RAROC and shows how it links credit risk to loan profitability, helping institutions guide pricing, optimize capital use, and align lending decisions with risk-return expectations.
Credit RiskThis final article in our Credit Risk Management series brings together Expected Loss, Unexpected Loss, and RAROC, showing how these metrics support pricing, capital allocation, profitability, and stronger credit risk management decisions.
Credit RiskSME lending challenges often stem from limited institutional capacity to assess, structure, and manage credit effectively. Closing these gaps is key to sustainable SME portfolio growth and resilience.