Which of the following statements correctly describe credit risk assessment and credit risk management?

• Credit Risk Assessment → This is the initial stage, where lenders evaluate the probability of borrower default. It includes: o Reviewing financial statements o Checking repayment history and credit score o Assessing collateral and repayment capacity • Credit Risk Management → A broader and ongoing process that follows assessment. It includes: o Setting exposure limits and risk thresholds o Monitoring borrower performance over time o Taking preventive or corrective measures to reduce losses o Developing recovery strategies for stressed or defaulted loans Thus: • Assessment = Evaluation & Quantification • Management = Continuous control & mitigation Together, these processes ensure sound lending practices and protect banks from undue exposure to default risk.