Credit Risk Leaders’ Network, Singapore, April 2025
Credit risk in a time of uncertainty
The Credit Risk Leaders' Network held on April 15, 2025 in Singapore brought together 22 senior credit risk heads and professionals from leading global and regional banks to discuss the latest developments in the ever-evolving credit risk environment. The session also covered best practices in credit risk management and what needs to be done to strengthen credit risk frameworks.
From the integration of artificial intelligence (AI) in risk management to discussions on tariff implications for the industry and global markets, the session offered valuable insights across a spectrum of pressing topics.
Key takeaways:
- Adaptability and Resilience: Emphasised as crucial for effective risk management in an environment of constant change and uncertainty.
- AI in Risk Management: Discussions on the integration of AI and machine learning in credit decision-making, highlighting the need for robust governance to ensure transparency and accountability.
- Multi-Level Risk Management: Importance of addressing risks from three perspectives:
- Structural: Building sound frameworks and cultures.
- Tactical: Agility in responding to immediate challenges.
- Strategic: Aligning risk appetite with long-term business strategies.
- Macroeconomic Challenges: Insights on managing credit risk in light of evolving tariffs, inflation, and rising interest rates, including recalibrating credit limits and stress-testing portfolios.
- Regulatory Landscape: Need for banks to stay ahead of regulatory changes, with varying approaches to compliance and risk governance discussed among participants.
- Counterparty Credit Risk: Increased focus on managing counterparty credit risk amid geopolitical tensions, with measures such as enhanced due diligence and scenario analyses being shared.
- Collaboration and Knowledge Sharing: Highlighted the value of open discussions among risk professionals to elevate the industry's collective capability and preparedness for future challenges.