The euro rings in the New Year
Article Abstract:
The introduction of the euro in the 11 countries covered by the European Monetary Union (EMU) is expected to have significant implications for credit and collections functions of companies operating in or out of the EMU countries. The euro will replace the national currencies of the EMU countries to become the new, single European currency. The euro was introduced on Jan 1, 1999 and can now be used for book or non-cash transactions. Euro notes and coins will be circulated on Jan 1, 2002 and old national currency coins and notes will no longer be legal tender. Credit managers should plan for the euro because it could result in parallel processing of accounts receivable systems during the transition period. Exceptions could also result in expensive and slow manual processes. Guidelines on how to prepare for the euro are discussed.
Publication Name: Credit World
Subject: Banking, finance and accounting industries
ISSN: 0011-1074
Year: 1999
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Timing is critical to good risk management
Article Abstract:
Reaction time is an essential component of portfolio credit risk management. Since the use of different tools for measuring credit risk may cause complexities and interdependencies, effective rank-ordering of the desired outcome over a certain period of time is critical. Timing allows lenders to determine and implement ways of identifying and responding proactively to transactions that cannot be recognized or managed effectively with the use of traditional risk management models. The use of monthly rather than quarterly credit bureau scores, for instance, can generate more favorable portfolio results. Furthermore, monthly credit risk score updates enable creditors to identify risk more quickly, resulting in substantial loss savings.
Publication Name: Credit World
Subject: Banking, finance and accounting industries
ISSN: 0011-1074
Year: 1998
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Just in time risk management
Article Abstract:
The credit card industry can utilize complex models to overcome the challenges that affect their survivability. Card issuers can utilize these models to effectively analyze their customer data and compress it into a summarized information to determine risks factors that affect their operations. These include account profitability, delinquency, attrition, bankruptcy, fraud, and collection performance. Credit card companies can also realize real-time risk management by developing accurate predictions in time to support decision making processes. They can do this by integrating a neural network framework with an authorization system designed to determine good accounts from bad ones and improve relationships with valued clients.
Publication Name: Credit World
Subject: Banking, finance and accounting industries
ISSN: 0011-1074
Year: 1998
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