An introduction to the research!
Risk and danger have always existed in the essence of all the business
and commercial affairs. It contains a wide range of customers services,
fame, technology, security, human resources, market prices of goods and
services, financing, legal affairs, personnel infractions, and definitely the
institutes' strategies.
In the case of banks and financial institutes, credit risk is the most
an important factor that has to be managed. Although credit risk can be
the result of different causes, these kinds of risks mainly arise from
economical crisis, the companies' bankruptcy, lack of rules and
regulations in the companies' accountancy and auditing process, the
increase of off-balance sheet obligations, the devaluation of collaterals,
and etc. A brief review of the essence of these causes shows that most of
they are those which are out of the control of the management of the banks
and financial institutes.
