Question

When a new credit request is received, the risk is assessed. If the risk is above a threshold, an advanced risk assessment needs to be carried out, otherwise a simple risk assessment will suffice. Once the assessment has been completed, the customer is notified with the result of the assessment while the disbursement is organized. For simplicity, assume that the result of an assessment is always positive.

Answer 1

When a new credit request is received, a risk assessment is carried out, and if the risk is above a threshold, an advanced risk assessment is performed. Once the assessment is completed, the customer is notified, and the disbursement process is initiated.

Step-by-step explanation:

When a new credit request is received, the risk is assessed. If the risk is above a threshold, an advanced risk assessment needs to be carried out, otherwise a simple risk assessment will suffice. Once the assessment has been completed, the customer is notified with the result of the assessment while the disbursement is organized.

The risk assessment process involves evaluating the creditworthiness of the borrower by considering factors such as credit history, income sources, and borrowing behavior. If the risk exceeds a certain level, a more detailed analysis is conducted, taking into account additional information like collateral, cosigners, or credit ratings obtained from agencies like Standard and Poor's and Moody's. After the assessment, the customer is informed of the decision and the disbursement process is initiated.