how does the financial system minimizes individual risk?

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01-06-2021
Business

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how does the financial system minimizes individual risk?

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faziz4136 faziz4136 · Answer 1 · 2021-06-11T21:39:16-04:00

faziz4136 faziz4136

11-06-2021

Answer:

To manage credit risk, the organization has to maintain credit exposure within the allowed bounds. One successful technique is via a risk assessment algorithm that evaluates how much a bank stands to lose on loan portfolio. Furthermore, loan choices are frequently dependent on the potential borrower's credit score and report.

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how does the financial system minimizes individual risk?

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