Develop credit policy

Trigger: A scheduled risk review, new regulatory mandate, or shift in macroeconomic conditions initiates the need to update or formulate lending guidelines.

1. Assess macroeconomic indicators and current market conditions
2. Evaluate existing portfolio performance and institutional risk appetite
3. Identify applicable regulatory compliance requirements
4. Draft specific lending criteria, exposure limits, and risk thresholds
5. Model the projected impact of the proposed policy on the credit portfolio
6. Obtain approval from the risk committee and board of directors
7. Publish and distribute the approved policy to underwriting and origination teams

Outcome: A finalized, approved credit policy is published to govern all institutional lending and underwriting activities.