For years, fraud and credit have operated in separate silos. But Zions Bancorporation’s recent $50 million charge-off — tied to suspected fraud and borrower misrepresentation — is a clear sign that those boundaries are disappearing. Fraud isn’t just a compliance problem anymore – it’s a credit quality problem. Managing credit risk starts with managing truth.

Mitigating credit risk is vital to managing credit portfolios. Key strategies include credit analysis and underwriting, diversification, collateral, credit limits, monitoring, credit risk transfer, and stress testing. These help reduce the likelihood and impact of borrower defaults. There is no one-size-fits-all approach—strategies should be tailored to the portfolio’s specific needs.

At Happy Prime, our support for Women in Credit Risk & Collections goes far beyond corporate social responsibility box-ticking. It’s about recognising a fundamental truth in our industry: diverse thinking leads to better risk management.

Discover what low side overrides are, why they matter in credit risk management, and how to mitigate their risks for a healthier loan portfo