Credit risk mitigation - How To Discuss

Credit risk mitigation,

Definition of Credit risk mitigation:

1. The employment of various methods to reduce the risks to lenders, banks and other business which offer credit. The methods can include risk based pricing, or adjusting the cost of credit according to the credit strength of the borrower; credit tightening, or reducing the amount of credit available to higher risk applicants; diversification, or increasing the portfolio mix of borrowers and purchasing credit insurance.