Magazine

The Argument for a New Lens on Credit Risk

As economic uncertainty becomes increasingly complex and interconnected, traditional credit risk indicators may no longer provide sufficient warning of emerging threats. Saad Aslam, Managing Director and Head of Credit Review at HSBC, argues that financial institutions must look beyond backward-looking metrics and embrace forward-looking signals, alternative data sources and broader exposure analysis. He explores how geopolitical disruption, market fragmentation and artificial intelligence are reshaping credit risk management, and why review teams must play a greater role in challenging the models, assumptions and processes that underpin lending and portfolio decisions.