Abstract
Credit risk is one of the main risks that affects banking as well as non-banking institution in an economy. The present research work aims to evaluate credit risk management practices of Royal Insurance Corporation of Bhutan Limited and Bhutan insurance limited, currently only two insurance companies in Bhutan. Primary data using structured questionnaire is collected. Analysis of the data reveals the key area which needs appraisal and modification to improve organization’s asset quality. Among ten variables identified as obstacle in CRM tested, majority of obstacle in CRM is due to lack of risk awareness and stringent regulatory requirement which was perceived by the employees of both organizations.
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