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

• Recognize the concept and importance of credit risk appetite in the context of a framework for managing credit risk
• Identify the key elements of a bank's credit risk management framework

Tutorial Overview Banks should have stringent structures in place to accept and manage credit risk, revolving around the creation of a robust credit risk management framework with high-level management participation. A key input into this framework is credit risk appetite, which is the level of risk that a bank is prepared to accept to achieve its objectives. This tutorial explains why establishing and maintaining an effective credit risk management framework is a necessary condition if a bank is to achieve its objectives by only taking on and then managing those risks that are within credit risk appetite. The tutorial also describes the various elements of a bank's credit risk management framework, including credit policies, processes, people, authorities, and infrastructure. Prerequisite Knowledge Credit Risk Management - An Introduction Tutorial Level: Intermediate Tutorial Duration: 60 minutes