Measurement of Credit Risk Using the Risicar Method

Abstract

The purpose of the following study is to measure the credit risks in funds of employees of Higher Education Institutions of Antioquia (hereinafter IES) in the period 2013-2017, through the method called Risicar, this is a useful instrument for identification, qualification and credit risk assessment; as the management of this type of risk according to De Lara (2013) is the most important risk to control for any entity. The research becomes a kind of protective shield against credit risks in the funds of employees of IES de Antioquia and in turn opens academic discussion on whether these protection mechanisms are relevant or not in said entities. Regarding remarkable results in the risk assessment, there were 63,64 % of the total risks studied in the category of serious risks and 9,09 % of risks in the category of unacceptable. It is striking that several employee funds do not have a detailed and established program to manage credit risk, or for example highlights the lack of a good predictor model to correctly classify potential clients between good and bad and quantify the expected loss, nonexistence of real evaluation of guarantees, legal processes are not followed for portfolio recovery, in some neither the complete financial statements of the associate are evaluated, nor their real indebtedness capacity, anti-cyclical provisions are not used; All of this can lead to non-compliance by customers as they do not have this type of filters and mechanisms.