The Importance Of Credit Risks In Human Resource Management

Improved Essays
Credit risks is a major risk associated with any lending institution. A lending institution relies on customers applying for loans and then making the monthly payments that consist of both principal and interest. However, when these debtors do not pay their monthly payments or when they make late payments, then that is a risk and it will affect the lending operations. An individual that would be in charge of trying to reduce these credit risks is a credit analyst. A credit analyst is responsible for determining the credit of the borrower and putting everything about the borrower’s credit in a portfolio in order to determine whether the borrower will be able to repay the loan amount according to the loan conditions. The main job of a credit analyst is to utilize a credit score system where each borrower is screened before the leaning institution …show more content…
An operational risk is a potential risk that were not meant to happen such as human risks, natural disasters, or error of the company policy and procedures. All of these components would affect the day to day operations of the business, but it is important that the human resource manager has plans and procedures in place where employees can go to reference in order to find the answer to a question before taking action. Another important component that would help reduce organizational risk is proper training on the company’s policies and procedures as well as the strategic plan and overall goals of the company. By a company properly training their employees, it will generate revenue by encouraging employee to follow the company rules and understand what is expected of them in terms of the company’s own policy and procedures (Levoy, 2011). Therefore, if the human resource manager takes the time and really teaches the employees of the policy and procedures of the company, then it will hopefully reduce the risks formed from operational

Related Documents

  • Improved Essays

    Unit 3 P1

    • 1729 Words
    • 7 Pages

    P1. Explain how organisations use information Purpose of Information within an organisation The purpose of information within an organisation is to offer operational support; this use of information as operational support helps an establishment make decisions when operating under time restrictions, it can also be used to support and control duties. An example of this could be, for example, reminding an employee of their work deadlines or ensuring they are aware of an ideal time frame for work completion.…

    • 1729 Words
    • 7 Pages
    Improved Essays
  • Decent Essays

    Samantha Seto HSA6119 April 11, 2015 New operational strategies are designed to improve the overall function of the organization and improve efficiency. The result is an increase in profitability and function of the employees. This implementation can change in company functions can be disruptive and can become costly as employees muddle through the process and learn new procedures, computer programs and loss in productivity can occur. Reducing costs, negative effects and frustrations of taking on new strategies, an implementation strategy should be developed.…

    • 538 Words
    • 3 Pages
    Decent Essays
  • Improved Essays

    Does OSHA Raise Penalties

    • 760 Words
    • 4 Pages

    How Does OSHA Raise Penalties 82% and We Don’t Notice? The two year Budget Agreement that president Obama signed in November 2 under closed doors, surprisingly included provisions that authorized Occupational Safety & Health Administration raised the penalties by as much as 50% to a new historic high level of 82%. This was the first time the penalty was being raised since Bush senior’s tenure in office, 15 years ago. In spite of the increase, Statistics indicate that OSHA fines are still relatively low compared to those charged by regulatory agencies like EPA.…

    • 760 Words
    • 4 Pages
    Improved Essays
  • Decent Essays

    It is important that when dealing with equipment that you take the correct action and fix the problem as quickly and safely as possible. If you follow the manufacturer's instructions then this will show you the best way to solve a problem and when the problem should be dealt with by a technician. If you do not follow these then you could cause more harm than good and further damage the equipment. If you have been found to do this then it might invalidate your warranty and you will have to pay for a replacement.…

    • 255 Words
    • 2 Pages
    Decent Essays
  • Great Essays

    Summary of the Evidence Patient- centered care is an important aspect of the healthcare organization when dealing with sensitive issues. Such care is a representation of the holistic view of nursing. Working as a Risk Manger represents a powerful role for an organization which includes managing the safety and integrity of the clients when facing critical issues. Patient centered-care not only recognizes the values and wishes of the clients and their loved ones, instead, it promotes autonomy in decision-making about their care. Such care should be culturally accepted by the clinicians and the healthcare team members.…

    • 1369 Words
    • 6 Pages
    Great Essays
  • Improved Essays

    Explain what responsible service of alcohol means, what the benefits of it are, how it links with the relevant legislation (particular to a state or territory), the role of government and industry in enforcing liquor laws and how responsible service contributes to harm minimisation. Upload your paper for assessment. Responsible service of alcohol, usually shortened to RSA, is a prerequisite for any person who desires to serve alcohol in a bar, restaurant, casino, liquor store or any other licensed locations in the Northern Territory or all through Australia. Organizations that teach their workers advantage by decreasing risk and making a safer, more responsible work surroundings. The teaching can be utilised to diminish legal responsibility…

    • 1177 Words
    • 5 Pages
    Improved Essays
  • Improved Essays

    General Liability Policy

    • 846 Words
    • 4 Pages

    Information on each risk is given to the risk manager and validated by the risk analyst. Potential sources that introduce risks are: A) characteristics of the client B) nature of the project C) use of consultants D) method of project delivery E) types of contracts, etc. Analyze Risks - encompasses the evaluation of probability, outcome, impact, severity, and prioritization. Some problems might happen infrequently but have a severe impact on the project and vice verse.…

    • 846 Words
    • 4 Pages
    Improved Essays
  • Great Essays

    The SVP Credit Risk and VP-Credit Risk/Underwriting Support will include competitive data and feedback from the lines of business where credit overlays may indicate Nationstar is an outlier or uncompetitive based upon loan performance and/or volume. Underwriting – When loans are submitted, based on the initial review, conditions are added to the…

    • 1256 Words
    • 6 Pages
    Great Essays
  • Great Essays

    Consumer Credit

    • 2039 Words
    • 9 Pages

    The End Of The American Dream The use of consumer credit has become an increasingly important aspect of the U.S. economy. Everyday Consumers use different forms of credits to purchase a certain good. For example, credit cards, loans, store cards, auto finance, and mortgages are the most common. Overall consumer credit has many uses and forms, but it however can cause many problems.…

    • 2039 Words
    • 9 Pages
    Great Essays
  • Improved Essays

    Hsc300 Case Study

    • 483 Words
    • 2 Pages

    ID Risk / description Category Probability (1-5) Impact (1-5) Risk Factor (P*I) /Rank Potential Responses Owner Trigger R1 Too many patients may use the application, causing performance disturbance. As of now it holds good for 200 patients.(Unsustainable User growth) Technical 4 3 12/3 M-…

    • 483 Words
    • 2 Pages
    Improved Essays
  • Decent Essays

    Some of the key aspects of Health and Safety legislation are; Prevention of workplace injuries by designing and organising effect and safe workplaces. Recognising what causes occupational injuries and disease and evaluating and controlling them. Participation from employees in making decisions about hazards and identifying risks and ways to control or eliminate…

    • 53 Words
    • 1 Pages
    Decent Essays
  • Improved Essays

    I. Opening Ice Breaker — Commonalities The purpose of this activity is to have each small group find as many things in common as possible that you cannot tell by looking at them, their gender or affiliation to Kappa. Instruct the group to get into clusters of four to five people. Each group must make a list of as many things in common as possible (e.g., all go to school in a different state from where they live, all have brothers, love tacos, etc.) in five minutes.…

    • 777 Words
    • 4 Pages
    Improved Essays
  • Superior Essays

    Task 1 a) Why business tends to give significance to the operations management? (1.1) 1.1.1 What is Operation Management (OM)? Operation Management is an activity of organizing the resources which are linked to the production and delivery of products and services (Iris). The mangers of operation management have a primary duty of processing the input into the output.…

    • 3964 Words
    • 16 Pages
    Superior Essays
  • Improved Essays

    Leadership in the Workplace 1. Introduction/Background In this assignment, I will be describing the transformational and transactional leadership behaviours, which supports the success to the safety program in my current workplace. I now work for a company by the name of “All Weather Windows Commercial Ltd”. I’ve been hired on as the Health and Safety Advisor and been employed under this role for over 3 years now.…

    • 831 Words
    • 4 Pages
    Improved Essays