METHODS AND TOOLS OF CREDIT RISK ASSESSMENT IN THE MODERN SYSTEM OF RISK MANAGEMENT

Authors

  • Ochilova Khusniya Olim kizi Tashkent State University of Economics, Master degree 1-year student

Keywords:

Credit risk assessment, risk management, financial institutions, qualitative tools, Uzbekistan 2030 Strategy, machine learning in finance, credit scoring models, regulatory compliance, financial stability

Abstract

This topic explores the essential practices and innovations in assessing credit risk within contemporary risk management, with a particular focus on financial institutions and markets like Uzbekistan’s. Credit risk assessment is central to determining a borrower’s likelihood of default and mitigating potential financial losses. Modern approaches leverage a mix of quantitative and qualitative tools, including statistical modeling, machine learning, and credit scoring systems, combined with more traditional evaluations like industry analysis and borrower interviews. These methods improve decision-making, operational efficiency, and the precision of risk evaluations.In the context of Uzbekistan, where economic reforms aim to strengthen the financial sector, credit risk assessment has a strategic importance aligned with national goals, such as those in the Uzbekistan 2030 Strategy. Regulatory compliance, coupled with these advanced tools, helps foster a more resilient financial environment, supportive of sustainable growth and financial inclusion. However, the topic also highlights challenges and criticisms, such as the risks of overreliance on technology and the need for balanced human judgment. In emerging markets, data limitations or biases in algorithms can compromise the accuracy of risk models, emphasizing the importance of combining advanced tools with local knowledge and traditional assessments. Overall, this topic underscores the vital role of effective credit risk assessment in building a stable financial system that can adapt to new risks and support economic development.

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Published

2025-01-08

How to Cite

Ochilova Khusniya Olim kizi. (2025). METHODS AND TOOLS OF CREDIT RISK ASSESSMENT IN THE MODERN SYSTEM OF RISK MANAGEMENT. E Global Congress, 25, 1–8. Retrieved from https://eglobalcongress.com/index.php/egc/article/view/294

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Articles