Models of Credit Risk Management in Conditions of Economic Instability

The article titled "Models of Credit Risk Management in Conditions of Economic Instability" explores various strategies and frameworks employed by financial institutions to manage credit risk during periods of economic uncertainty. It discusses key models such as credit scoring, default probability (PD), loss given default (LGD), stress testing, and portfolio diversification, emphasizing their relevance in mitigating potential losses. The article also highlights the importance of adapting these models to changing economic conditions to ensure the financial stability of institutions. The study provides insights into how these risk management models contribute to maintaining solvency and resilience in times of market volatility or crisis.