Mitigating credit risk during macroeconomic volatility: Strategies for resilience in emerging and developed markets
1 Independent Researcher, UK.
2 Independent Researcher, Port Harcourt Nigeria.
3 Newcross Exploration and Production Limited, Nigeria.
4 Independent Researcher, Lagos, Nigeria.
5 Independent Researcher, Canada.
Review
International Journal of Science and Technology Research Archive, 2022, 03(01), 225-231.
Article DOI: 10.53771/ijstra.2022.3.1.0064
Publication history:
Received on 14 June 2022; revised on 20 July 2022; accepted on 25 July 2022
Abstract:
Macroeconomic volatility poses significant challenges to financial systems, amplifying credit risk and exposing vulnerabilities in both emerging and developed markets. This paper explores the dynamics of credit risk during economic instability, emphasizing the distinct challenges faced by diverse market categories. It highlights critical strategies for mitigating risk, including robust credit assessments, regulatory interventions, and technology-driven solutions for real-time monitoring. The analysis underscores the importance of building resilience through enhanced institutional capabilities, diversification, and contingency planning. Drawing on cross-market insights, the paper provides actionable recommendations to strengthen financial systems, foster global collaboration, and ensure long-term stability. By integrating innovative practices and leveraging international cooperation, stakeholders can navigate complex risk landscapes and contribute to sustainable economic growth.
Keywords:
Credit Risk; Macroeconomic Volatility; Financial Resilience; Emerging Markets; Risk Mitigation Strategies; Global Financial Stability
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Copyright © 2022 Author(s) retain the copyright of this article. This article is published under the terms of the Creative Commons Attribution Liscense 4.0