SAARC FINANCE,
REGIONAL SEMINAR, ISLAMABAD
32
Main Risk Drivers in a Scorecard
Financial
Examples include:
§Firm
size
§Capital
§Liquidity
§Profitability
§Efficiency
Qualitative
Examples include:
§Asset quality
§Market position
§Diversification
§Management quality
§Quality of risk management
§Quality of financial reporting
§Aspects of funding and liquidity
Warning signals
Examples include:
§Unforced
change of auditors
§Fraud
§Quality
of financials
§Request
for interest suspension
§Discord
in the BOD
§Transfer
of Helm of Affair from
one generation
to another