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Credit Risk Management
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137 b
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Risk is an everyday thing to every person; business can operational free society without taking risks. Generally risk has to do with the uncertainty of losing, or not gaining, something of value. Risk occurs because of the variation in outcomes or results. Insurance emphasizes the variable results of financial losses. Uncertainty rather than predict - ability, not knowing rather than knowing. Economy with no money or financial system, the opportunities for investment and for altering consumption patterns are very limited. By introducing money and gradually making the economy more complex, the economic choices available to individuals in the economy are improved with a well developed financial system, it is possible to take better advantage of opportunities for real investment work together with real investment to improve the condition of economic units in the economy. The financial system in a modern economy is more sophisticated, it has a vast network of various institutions with modern facilities. Its operations cover all commercial and industrial centers of the world. Its policies and programs play a major role in the social and economic development of the region concerned
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