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Compact case
Published by: Ivey Publishing
Originally published in: 2011
Version: 2011-05-05

Abstract

The chief credit officer (CCO) at Seoul National Bank has recently faced numerous defaults on its corporate loans. To address this problem, the CCO must re-evaluate how the bank responds to defaults and determine a default strategy. The CCO must analyze the pros and cons of 1) collecting on collateral, 2) partially settling, and 3) wait and seeing, evaluating the payouts and risk profiles of each strategy. Further, the CCO must determine a systematic way to approve loans from companies. Analyzing both qualitative and quantities factors, the CCO must determine which companies to approve for loans given a certain size of its loan portfolio. Given these decisions, the CCO must determine whether or not to increase or shrink the size of its loan portfolio based on the expected outcomes and/or simulated results.
Location:
Size:
Large
Other setting(s):
2005

About

Abstract

The chief credit officer (CCO) at Seoul National Bank has recently faced numerous defaults on its corporate loans. To address this problem, the CCO must re-evaluate how the bank responds to defaults and determine a default strategy. The CCO must analyze the pros and cons of 1) collecting on collateral, 2) partially settling, and 3) wait and seeing, evaluating the payouts and risk profiles of each strategy. Further, the CCO must determine a systematic way to approve loans from companies. Analyzing both qualitative and quantities factors, the CCO must determine which companies to approve for loans given a certain size of its loan portfolio. Given these decisions, the CCO must determine whether or not to increase or shrink the size of its loan portfolio based on the expected outcomes and/or simulated results.

Settings

Location:
Size:
Large
Other setting(s):
2005

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