4.6 Resources and skills

Institutions should have sufficient resources and staff allocated to credit risk taking and, in particular, credit decision-making, credit risk management and internal control. The organisational structure should be reviewed periodically to ensure that there are adequate resources, competencies and expertise within the credit risk management functions to effectively manage credit risk.

Institutions should ensure that the staff members involved in credit granting, in particular decision-making, risk management and internal control, have an appropriate level of experience, skills and credit-related competence.

Staff involved in credit granting, including credit decision-making, credit risk management and internal control, should frequently receive appropriate training, which includes considering changes to the applicable legal and regulatory frameworks. Training should be aligned with the institutions’ credit culture and business strategy and should be conducted on a regular basis to ensure that all relevant staff are appropriately skilled and familiar with the institutions’ credit policies, procedures and processes.