Citigroup

The Citigroup risk management framework recognizes the diversity of Citigroup’s global business activities by balancing strong corporate oversight with well-defined independent risk management functions within each business. The Citigroup risk management framework is described in Citigroup’s annual report on Form 10-K filed with the SEC.

Credit risk is the potential for financial loss resulting from the failure of a borrower or counterparty to honor its financial or contractual obligations. Credit risk costs arise in many of the company’s business activities including lending activities, derivatives activities, securities transactions, settlement activities, and when the Company acts as an intermediary on behalf of its clients and other third parties. The credit risk management process at Citigroup relies on corporate-wide standards to ensure consistency and integrity, with business-specific policies and practices to ensure applicability and ownership.

For recent trends in our credit portfolio and asset quality, please click on the image to the right.

For a more thorough description of our credit risk management process and additional information on our credit portfolio, please see the section titled “Credit Risk Management Process” as provided in our annual form 10-K and quarterly 10-Q SEC filings.