Credit Risk Management Organization and Policy

The organizational diagnosis of an economic entity is intended to be an exercise with an economic aim, by improving its mode of governance, its functioning and its process of generating results, in order to reach the optimum. This diagnosis, applied to a banking entity, becomes more relevant when combined with the credit risk management policy. In the case of the Banque Malienne de Solidarité through its SME Department, the exercise revealed a number of dysfunctions, both in terms of organization and curative credit risk management. Avenues of improvement were formulated in the form of recommendations on organizational shortcomings (notably on the prerogatives and attributions of the service, the management of human resources, the process of handling customer requests, etc.). As for the curative management of credit risk, the implementation and use of modern tools such as the Scoring system, securitization and RAROC (Risk Adjusted Return On Capital), are widely addressed.