The application of a methodology for calculating the internal credit rating and the counterparty credit risk limit in credit risk management

The article discusses the application of a methodology for calculating internal credit ratings (ICR) and setting credit risk limits in order to manage credit risk within organizations. It examines the key elements of assessing the creditworthiness of business partners, including analysis of financial indicators, business reputation, and external data. Special attention is given to the methodology of calculating IRC based on both quantitative and qualitative factors, as well as establishing credit risk limits to mitigate financial losses. The paper emphasizes the importance of incorporating internal ratings and risk limits into risk management processes in order to ensure financial stability and regulatory compliance.The technique has been implemented in a gas transportation company and has proven effective in real-world settings.