Document background
The Credit Risk Audit Program serves as a critical tool for financial institutions operating under Saudi Arabian jurisdiction to evaluate and monitor their credit risk management practices. This document becomes necessary when organizations need to establish or update their internal audit procedures for credit risk assessment, ensuring alignment with SAMA regulations, Basel framework requirements, and international best practices. The program outlines comprehensive audit procedures, risk assessment methodologies, and reporting requirements, providing a structured approach to evaluating credit portfolios, underwriting standards, and risk monitoring processes. It is particularly relevant in the context of Saudi Arabia's evolving financial landscape, where both conventional and Islamic banking practices must be considered in credit risk management.
