Study on the Strategy Combination of the Credit Risk Management

the strategy aggregation of the credit risk management refers to the combination of the management strategies adopted during the whole process of the credit risk management guided by the systematic theory. It targets at all the credit activities and aims at minimizing the risk losses. The strategy combination of the credit risk management includes; the risk consideration strategy (F(1)), the risk prevention and control strategy (F(2)), the risk avoidance strategy (F(3)) and the risk retention and release strategy (F(4)). The basic relation between the four strategies is; F(1) * (F(2) + F(3) + F(4)) >= 1. It is also called as the basic model of the strategy combination of the credit risk management.