Level of Credit Risk in the Quality of Financial Management

Abstract

Risk is an uncertain situation in any activity carried out and any natural or legal person is exposed to this phenomenon. In the financial field, it is vitally important to predict the future to make the best possible decision. The study aimed to determine the credit risk in the quality of financial management of Investment Fund Management Companies in Peru. 2019 – 2022. Likewise, the methodology used was based especially on a descriptive model, using a qualitative approach. Data collection was carried out through the survey and a questionnaire, prepared with questions about the variables under study (Level of credit risk and quality of financial management), where a survey was applied aimed at professional operations managers, risk managers and general managers of Investment Fund Management Companies, which with their contributions provided us to clarify our questions. The results found that the level of credit risk and payment capacity significantly affected the quality of financial management of Investment Fund Management Companies in Peru,  having an impact on the delinquency of investment fund management companies, because if clients do not generate the adequate level of cash it can affect their level of liquidity. Concluding that in order to properly manage a loan portfolio and make an adequate allocation of resources, Financial Intermediation Entities are in need of measuring credit risk.