Credit Risk: Is More Than Just Number Crunching: Modern Credit Management Means Getting Behind the Numbers and Assessing Factors Such as Quality of Management. Training of New Credit Risk Managers Should Also Reflect This Holistic Approach. (Training Supplement)

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Credit risk management used to be more a case of crunching the numbers to assess the ability of an entity to repay its debt. Now, credit risk training is increasingly likely to emphasise qualitative aspects such as the strength of management, or the type of industry a company operates in.

Ken McLay, the managing director of risk solutions for Standard & Poor's, agrees there is a greater awareness today of the importance of these wider aspects.

"I think there's also a greater recognition that to fully understand credit risk it's not just about looking at the quantitative aspects of credit risk such as financial ratios, but also looking at qualitative aspects," he …