The IACPM published a White Paper on the findings of its biennial 2021 Principles and Practices in CPM member survey. The Survey looks at the evolution of Credit Portfolio Management (CPM), organizational structures, mission and mandate, tools used to manage the credit portfolio, and outlook for the future. For the first time, the survey included questions on ESG considerations when assessing credit risk. Sixty-four member firms from around the world participated in the 2021 Survey. In addition, IACPM staff conducted interviews with a number of participating firms to help inform observations.
CPM’s seniority and its role within the firm increased during the COVID crisis. CPM functions demonstrated leadership and adaptability to fulfill new and urgent needs for timely credit data and analysis, and also served as a hub for important and growing linkages within the firm (risk, line of business, capital policy etc.).
Against this backdrop of lessons learned from the extreme stresses of the early COVID period, the Survey results continue to support the findings of prior surveys that there is no “one-size fits all” for CPM. The 2021 data demonstrates a range of CPM business models reflecting the nature of the portfolio, geographic location, organizational structure, and culture.
The white paper can be accessed here.