Escalation

When and How to Escalate a Credit Issue

Escalation is the process of raising a credit issue to a higher level of management. It's an important part of credit risk management, as it ensures that potential problems are addressed in a timely and effective manner.

When to Escalate

• When you identify a material risk: If you identify a risk that could have a significant impact on the borrower's ability to repay the loan, you should escalate it immediately.
• When you're not getting the information you need: If the borrower is not providing you with the information you need to assess their financial health, you should escalate the issue.
• When you're not comfortable with the situation: If you have a gut feeling that something is wrong, it's always better to err on the side of caution and escalate the issue.

How to Escalate

• Be prepared: Before you escalate the issue, make sure you have all the facts. Be prepared to explain the situation clearly and concisely.
• Be professional: Even if you're frustrated, always be professional. Don't let your emotions get the best of you.
• Be persistent: Don't give up. If you don't get a satisfactory response, keep escalating the issue until you do.