The overarching purpose of credit risk analysis is to: Group of answer choices Quantify potential credit losses Determine a company's optimal capital structure Identify credit opportunities Provide information to banks about credit losses

Question

Avery

Business

11 June, 17:46

The overarching purpose of credit risk analysis is to: Group of answer choices Quantify potential credit losses Determine a company's optimal capital structure Identify credit opportunities Provide information to banks about credit losses

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Emilee Holloway · Answer 1

Identify credit opportunities

Explanation:

The main goal of credit risk analysis is to identify the potential risks of lending out to a particular customer, whether it is a person or a firm.

In other words, is to identify whether a person or firm is credit worthy. From this concept of credit worhiness, we can affirm that the purpose of credit risk analysis is essentially to identify credit opportunities, since from the fact of finding out that a potential customer is credit worthy, a credit opportunity is created. (the loan is made to the credit worthy customer).