For any firm to run a successful credit risk management, it needs a structure to perform under and to provide better information to their customers. The customer, in these cases, is the biggest objective for the company.
Knowing your customers is a very significant factor. This is also very much valid in marketing when the target market got to be identified. Hence, even in the world of credit the identity of the customer is very important as well as the knowledge about him.
The financial work runs a high risk among lending financial companies and banks. Being defined as the losses as the consequence of a default of payment, it is a risk that runs high and leads a company towards instability. Hence, evaluation and analysing is very much important since its two way traffic both for the customer and the company at his backing for this risk.