Credit Risk may arise at the level of a loan or of a portfolio.

 The following factors may cause the arising of credits risks at the level of individual loans:

• Lack of funds of the borrower for the repayment of the loan and for making payments under the credit facility
• Security liquidity risk
• Failure of sureties to comply with their obligations
• Personal features applicable upon a borrower.

The following factors may cause the arising of credits risks at the level of a loans portfolio:

• High concentration in respect of any specific field of economy
• Portfolio’s currency concentration
• Failure of the loan portfolio to correspond to the requirements of the bank
• Personnel’s qualifications.

Management of credit  risks includes the following stages:

• Evaluation of a credit risk;
• Monitoring of a credit risk;
• Regulation of a credit risk.

The following methods may be conducive to achieving the goals and purposes of the management of credit risks:

• Thresholds system (limits);
• Authorities and decision making system;
• Information system;
• Monitoring system;
• Control system.