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Risks in the Credit Process, Prevention Methods and their Coverage

Author

Listed:
  • Viorica IOAN

    (Dunarea de Jos University of Galati, Romania)

  • Costinela FORTEA

    (Dunarea de Jos University of Galati, Romania)

Abstract

This paper provides an overview of credit risk assessment and operational risk prevention and coverage methods. Bank management is based on profit maximization and risk minimization objectives. The level of profit obtained by a bank is also a direct consequence of the type of strategy adopted in the bank's management in the sense of accepting or not the risks in the performed activity. The risk of unexpected losses are treated as recorded in the banking business developments due to the registration of the results to the effects anticipated. Operational risk is the danger of unexpected losses, a result of the action of the bank's internal and external factors affecting conducting operational activity. So, we are presented methods of prevention and operational risk coverage.

Suggested Citation

  • Viorica IOAN & Costinela FORTEA, 2019. "Risks in the Credit Process, Prevention Methods and their Coverage," Economics and Applied Informatics, "Dunarea de Jos" University of Galati, Faculty of Economics and Business Administration, issue 2, pages 141-147.
    • Handle: RePEc:ddj:fseeai:y:2019:i:2:p:141-147
    DOI: https://doi.org/10.35219/eai1584040944
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    References listed on IDEAS

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    1. Ioana Lupasc & Laura-Ana Baragan, 2016. "Aspects Concerning the Relationship between Internal Audit and Fraud Risk," Risk in Contemporary Economy, "Dunarea de Jos" University of Galati, Faculty of Economics and Business Administration, pages 291-296.
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