As a credit manager, you know that unless the credit limit requested exceeds your level of authority, the responsibility for making the decision is yours. Many, and probably most credit managers carry this responsibility alone. I believe this is a serious mistake.
In my opinion, credit managers should develop a network of advisors. This is not a network of people simply to commiserate with. Instead, it should be a group of individuals with whom you can share issues and concerns, and with whom you can request feedback about the more difficult credit decisions.
I joined a network of credit professionals more than five years ago. I know this network has helped improve the speed and accuracy of the decisions I have made, and I am convinced that every credit manager should consider forming their own network. Just be careful that you
do not violate any antitrust rules when discussing ways to mitigate credit risk. For example, I never reveal the name of the customer that I am calling about when requesting guidance from my circle of trusted advisors.
Michael Dennis’ Covering Credit Commentary. Michael’s website is www.coveringcredit.com.
The opinions presented are those of the author. The opinions and recommendations do not necessarily reflect the views of CMA, or their Officers and Directors. Readers are encouraged to evaluate any suggestions or recommendations made, and accept and adopt only those concepts that make sense to them.