Credit Risk Credit Risk Management Principles Cim Finance’s credit risk management framework is guided by a set of governing principles outlined in credit-related policies and standards. These are further supported by more specific processes and operating procedures applying to each lending segment. The framework’s primary objective is to ensure that all material credit risks faced by the Group are identified, measured, managed, monitored, mitigated and reported on a consistent basis. Achieving this requires the thorough evaluation of proposed credit extensions, setting specific and appropriate limits, continuous monitoring throughout the exposure’s lifecycle, the active deployment of credit mitigation tools, and a disciplined approach to recognising credit impairment. The risk management function provides independent oversight of credit risk, and ensures effective risk reporting to the Risk Management Committee and the Board. This includes tracking developments in credit risk and compliance with specific risk policies and limits. Large credit risk exposures are subject to regular monitoring through the Debtors Monitoring Committee, which facilitates closer attention and timely action, when appropriate. The Credit Risk function operates independently of the Business Units, offering robust oversight and challenging the credit risk management activities undertaken by these units. Oversight of the first line of defence ensures that credit risk remains within the appetite set by the Board, and that controls are being operated adequately and effectively. Defining the credit risk appetite measures for the management of concentration risk, recommending changes to credit policies and enhancement in controls that must be in place to mitigate credit risk. Independent monitoring and reporting of the performance of credit scorecards and risk profile of the portfolio. Assessing and recommending the ECL provisions, including the key IFRS 9 inputs and any necessary in-model and postmodel adjustment provisions. Material changes to the ECL Standard and to the models are reviewed and approved by the Risk Management Committee. Credit Risk Function 87 Introduction Group Overview Leadership Strategy & Performance Risk Management Corporate Governance Statutory Disclosures Financial
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