Stick to your guns when managing credit risk
Don’t stretch your credit risk boundaries when entering into new lines of business
One mistake Brian Vannoy has seen financial institutions make time after time during his more than 23 years as a lender: Stretching the credit boundaries when venturing into new territory.
“Whether it’s a new product, a new geographic market, or a new borrow type, it’s important to be disciplined around the credit standards we set, particularly early on,” says Vannoy, who in July was named chief credit risk officer for $1.1 billion asset Allegacy Federal Credit Union in Winston-Salem, N.C.
“Even though it’s hard to be patient when you’ve launched an exciting new venture, the long-term rewards of sticking to your credit standards will be worth the wait,” he says.
Vannoy recently shared his approach to credit risk management with Credit Union Magazine.
CU Mag: What are the biggest credit risk areas facing your CU?
Vannoy: The single biggest credit risk area for our credit union is the area of concentration management.continue reading »