Evaluating The Effectiveness Of Credit Risk Management...

CHAPTER ONE Introduction Zimbabwe’s financial sector has over the years been crippled by Non-performing loans. Non-performing loans arise from credit risk or default risk which as defined by Jorion(2003) is the risk of an economic loss from the failure of a counterparty to fulfill its contractual obligations. Its effect is measured by the cost of replacing cash flows if the other party defaults. Credit risk can thus be seen to contribute significantly to the profitability of an organization and hence the need to hedge against such risk. This study aims to assess the effectiveness of credit risk management tools which are being used by Microfinance institutions (MFIs) in Zimbabwe by assessing the effect of credit terms, client appraisal, credit control measures as well as credit collection policies on loan repayment. Microfinance Institutions by their nature are more vulnerable to credit risk owing to a number of reasons such as; that the primary clientele of MFIs consists mostly of those who face barr iers in accessing financial products from traditional financial institutions Murdoch (2008), the scope of activities is mainly limited to lending that is a microfinance institution cannot engage into other activities done by the bank such as underwriting of securities and foreign trade operations among others . 1.1 Background of the Study Since the adoption of the multi-currency regime, Zimbabwean financial institutions have increasingly been facing challenges associated withShow MoreRelatedCase Study Analysis : Company s Financial Wealth And Position1440 Words   |  6 PagesA4080865 togrul.khalafov@gmail.com Risk Management Report Bluehill Bank Written Coursework Assignment Ratio analysis is the best way of analysing the company’s financial wealth and position. It helps to understand the crucial financial figures of an entity pointing to weak and possibly risky parts of its finance. Using the results of the analysis managers can strengthen the financial position by determining and eliminating possible risks related to credits, operations and market fluctuationsRead MoreRecommendation For Current It Security Policy794 Words   |  4 PagesThis defined fraudulent behavior and solidified criteria for productive countermeasures. Prevention and risk management must be addressed by establishing policies and procedures and enforced by management at all levels. In accordance with Societe Generale Bank security policy these recommendations are proposed †¢ Implement institutional audits, including employee actions; †¢ Implement quarterly risk assessments; †¢ Implement quarterly security awareness training for all employees; †¢ Enforce separationRead MoreProcess Controls And Technology Controls1288 Words   |  6 PagesControls Technology Controls Process Controls IT and Security Strategic Management, Policy and Architecture – Architectures, policies and strategies defined to run IT services Organizational Structure, Roles and Responsibilities and Standards for interactions between groups; authority for security and external security related Communications ïÆ' ¼ Training and Awareness – Processes to increase visibility and knowledge of security risks Assessment and Auditing and Processes to assess the environment, controlsRead MoreFinancial Statements From Health Management Associates861 Words   |  4 Pagesfocus of the business, there are overhead cost, debts need to be paid, and employees need to be paid. While healthcare providers are providing excellent care to the patients, management is ensuring sufficient resources are incoming to maintain operation. The management team will use financial statements from Health Management Associates (HMA) to develop a financial plan for the next three years. The Financial analysts will use financial ratios to speculate HMA’s ability to meet financial obligationsRead MoreCorporate Audit Questions1268 Words   |  6 PagesCHOICE/TRUE-FALSE QUESTIONS For each question, please select the best answer. Clearly mark your selection (A, B, C, D or E, as applicable) on the accompanying Scantron form. If more than one letter (or no letter) is selected for a particular question, no credit will be given for that question. 1. Which of the following is not a Sarbanes-Oxley requirement for audit committees? A. The audit committee should view itself as the â€Å"client† of the external auditor. B. The audit committee must be chairedRead MoreRisk Management Process Section Of Management2300 Words   |  10 Pagesof the Risk Management Process section of the Risk Management Plan based on the facts presented in the case study Risk management process is an important aspect of the organization. There are various threats that may impede the organization’s success. For example, the scenario in the case study may make the company lose a number of loyal customers; hence, reduction in sales revenue. The scope and objectives of the risk management process should be in line with the overall risk management plan. TheyRead MoreFinancial Analysis Of Hyundai Motors And Ford Motors1617 Words   |  7 Pages Financial Analysis Management Hyundai motors and Ford Motors July- 2,2015 Student ID- 1327885 Subject code: 7203 Table of Contents Introduction 2 Hyundai Motors 3 Ford motors 4 Objective of Financial ratio analysis 4 Ratio Analysis 5 Comparing Financial Analysis 5 Key Financial Ratio 6 Profitability 6 Net profitRead MoreAnalyzing the Operations Management Course of a College1299 Words   |  5 PagesOperations Management Course A Reflective Essay My knowledge of operations managements impact on organizational effectiveness has grown considerably in this course. I now have a better understanding of how the design and improvement of operational processes and systems can be structured so that the resources required for producing and delivering goods and services are optimized to their full potential. I have a newfound appreciation for the role of operations managers. They take on the challengeRead MoreHealth Care Management13705 Words   |  55 PagesQualifications in Healthcare Management ATHE Level 7 Award in Programme Leadership (QCF) ATHE Level 7 Award in Sustainable Business Strategy (QCF) ATHE Level 7 Certificate in Developing Organisational Vision and Strategic Direction (QCF) ATHE Level 7 Certificate in Manage Continuous Organisation Improvement (QCF) ATHE Level 7 Certificate in Research for Senior Managers (QCF) ATHE Level 7 Certificate in Healthcare Management (QCF) ATHE Level 7 Diploma in Healthcare Management (QCF)  © ATHE Ltd 2011Read MoreOrganizational Change : Tragedy Or Transformation1217 Words   |  5 Pages Introduction Leading change management requires establishing a theoretical foundation that supports change initiatives. This document will research the theoretical elements of change and change management models. Addressed will be the following: factors that contributed to the organic evolution of change, methodologies used in formulating strategic development approaches, commensurate leadership and management skills used to sustain growth during change management and data retrieval and analysis