A Credit Risk Model To Develop The Credit Insurance Market

Abstract

The globalization of the markets, as well as the deregulation of the economies, are world-wide tendencies that have created the necessity for the institutions to count on tools that collaborate in the identification, measurement and control of the risks in which they are exposed. It is necessary that all kind of companies be able to identify generic risks and to assure they count with the appropriate measurement systems that allow them to conceptualize, to quantify and to measure credit risks. This investigation has as main goals: to propose a credit risk model for Mexico and all Latin America that allow entrepreneurs of medium and large sized companies to measure and control their credit risk position; an alternative goal would be to propose some tools that can be used to make this kind of risks less damaging.