| Summary: | The research is to evaluate the implementation of credit risk management in
the banking industry, relates with its function to mitigate the risk. The research is
made based on the literatures and fields studies, and focused on managerial aspects of
credit risk management implementation. The primary data are collected from the
company�s data, observation and interview results, whereas the secondary data are
sourced from the media publication. The data which collected from the observation
process were analyzed using qualitative analytical descriptive methods, by comparing
the real conditions practiced by banks with the theory and current regulations.
The result reveals the credit risk management in Bank OCBC Indonesia has
been implemented although it is not yet optimal. Few elements still need
improvement i.e. the learning process of the system and practical training to support
the risk management process, improvement on credit exposure management and the
Credit Obligor Grading process.
The implementation of the credit risk management was done by identifying
and evaluating the credit risk using Credit Obligor Grading, therefore the bank
expects to minimize the potential risks which may occur in the future.
The evaluation of the credit risk management demonstrates a positive result
toward bank�s earnings, thus it was recommended for bank to continue and improve
the implementation process comprehensively, to be accustomed with the changing of
the business complexity and supported by the reliable human resources in order to
obtain the maximum result.
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