Objectives On completion of this tutorial, you will be able to:

• Recognize how the preferred customer position can vary from bank to bank
• Aggregate the credit facilities and utilizations for customers and customer groups, and determine the need for such aggregation

Tutorial Overview This tutorial is the first in a series that looks at the issue of customer management from a credit risk point of view. The focus here is on customer positioning and aggregation. In recent times, there have been substantial changes in banking services and how customers do business with their bank(s). With competition in the industry escalating - including an increased threat from nonbank entities - banks have had to reconsider their positioning strategies in an attempt to increase their market share, improve their profitability, and so on. This tutorial describes some of the key issues related to customer positioning from a bank's point of view. The tutorial also looks at the importance of correct aggregation of credit facilities and/or utilizations for customers and customer groups, as well as some of the difficulties and challenges that banks face in that regard. Prerequisite Knowledge Credit Risk Appetite - Customer & Industry Risk Tutorial Level: Intermediate Tutorial Duration: 60 minutes