The CRMS FP07:2015 Scheme represents a structured approach to the management and improvement of the credit processes. The suggested organizational model is inspired by the Standard ISO 9001.

The Scheme has been designed and written to foster compatibility and integration with the most recent management systems, whose most relevant features are:

  1. High Level Structure

  2. Process driven approach and PDCA Model

  3. Analysis of the context and of the expectations of the interested parties

  4. Risk management/Risk-based thinking

Application field and contents

The requirements of the CRMS FP07:2015 Credit Risk Management System Requirements Scheme are applicable to any organization regardless the type, size and products or services delivered. It is assumed that all requirements must be addressed but their level of implementation may depend on the complexity of the company and the context they belong to.

As an example, we describe the leverages that the Standard proposes to improve the management of credit within the company:

  • Implementation/optimization of a risk management model with scoring for the evaluation of the credit risk of customers to be updated regularly
  • Customer segmentation into risk classes based on the classic methodology of Rating/Basilea 2-3
  • Risk and opportunity analysis, considering both the internal and external aspects that may have impacts on credit including the country risk
  • Adoption of improvement of the process of acquisition of commercial information from external Agencies or available internally
  • Definition and management of credit lines
  • Decrease of mistakes and exceptions handling in business processes
  • Decrease of mistakes or delays in invoicing, administrative operations, claims management which are often sources of troublesome customers
  • Optimization of operational processes such as collection, demonstrated payments, reminders, suspension of supplies
  • Implementation of procedures for continuous monitoring of credit
  • Evaluation of suppliers of external services such as ADR, Law Study, information and improvement of communication processes and execution timing of credit collection tasks
  • Continuous improvement approach by using credit reports with key indicators

Download CRMS FP 07:2015 Scheme