5 Traits of the ideal credit manager

In addition to having credit risk software, supportive policies and procedures, a quality credit manager at a financial institution will have well-honed skills. Some of those skills come from experience, but some are more innate. Below are five traits integral to being a successful credit manager.

1. A good negotiator. Lenders and credit managers often have to take an array of information to craft a decision that will benefit the company rather than expose it to unnecessary risk. A successful credit manager is people-oriented and has a genuine interest in working with people, which will allow you to balance risk with opportunity.
2. An independent thinker. It’s essential to base credit decisions on facts rather than the attitudes of others toward a particular customer. A good credit manager gathers the required information and reviews it objectively.
3. Knowledgeable of laws that affect credit in your area. Understanding federal, state, and local laws relevant to your field may help the creditor avoid certain acts that could create liability.
4. Has integrity. Trust in banks and financial institutions has improved, but it remains low, so maintaining a solid reputation is essential. The integrity of a credit analyst or credit manager is vital in safeguarding the institution’s reputation.
5. Is analytical. The data on financial statements often don’t tell the whole story. So it’s critical to understand and study the data behind the figures and search for trends and clues to the future. Often, having easy access to data through credit risk software can help complete the view of the risk landscape.