Open AccessOn the possible tools for the prevention of non-performing loans. A case study
Author(s) -
Elena Bruno,
Giuseppina Iacoviello,
Arianna Lazzini
Publication year - 2015
Publication title -
risk governance and control: financial markets and institutions
Language(s) - English
Resource type - Journals
eISSN - 2077-4303
pISSN - 2077-429X
DOI - 10.22495/rgcv5i1art1
Subject(s) - process (computing) , work (physics) , portfolio , risk analysis (engineering) , quality (philosophy) , credit risk , business , process management , computer science , finance , engineering , mechanical engineering , philosophy , epistemology , operating system
This work analyses the contribution of an Information Systems (IS) to the implementation of credit monitoring as a new integrated process to prevent non-performing loans in a small bank. The study focuses on the process of active monitoring of the entire credit portfolio, aimed at guiding the best migration between risk classes. This is understood as a set of integrated activities, in which the quality of information becomes a major determinant of the outcome. Such tools support risk management in the decision-making process and aiding performance evaluation. The purpose of this work is to highlight the possibility of an IS to support this new integrated process of credit monitoring, providing increasingly reliable data, availability on demand and real-time information.