PHD Proposal

ANALYSIS OF RATING TECHENIQUES IN CREDIT RISK MANAGEMENT AND ITS

APPLICATION TO SME BUSINESSES: A CASE STUDY OF UK SMEs.

Introduction
In order to improve overall risk management, there have been wide range
discussions and developments of exposures of credit portfolio, quantitative risk
techniques and application of risk to return based on individual level credit
checks by the large UK banks and financial institutions.
Credit models can be termed as devices or warning signs to estimate the
probability of default, that brings the credit grade to expect losses associated to
individual portfolio computation. Modelling methods provide probability of
response and have become one of tools in calculating accurate risk.
There have been many efforts by writers risk management models that apply to
the corporate world, the emphasis has remained on relationship banking and
retail lending for solving asymmetrical computations. Due to large in volume,
SME has remained an area to explore asmuch study focuses on