Analisis Penerapan Manajemen Risiko Pada Pencegahan Risiko Kredit Pada Bank Perkreditan Rakyat

Rural Bank as one of the banks that provide financial intermediation services mainly to micro and small businesses and rural communities, continue to face risks in the implementation of its business activities. Industrial development of Rural Banks is increasing, people's need for financial services that is more varied, easy, and fast encourage rural banks to further improve products and services, and in turn can increase the risk of Rural Banks. The main activity of Rural Bank in disbursing the funds is to give credit to the public in order for the credit to be useful according to the needs of customers, and provide benefits to rural banks in the form of interest income from loans. Giving credit is one way to increase the number of productive assets of Rural Banks, which can have a direct impact on increasing the assets of Rural Banks as a whole. Credit risk is the productive assets, which means that the credit has a potential impact losses due to the occurrence of a particular event. The increase in this risk must be balanced by an increase in risk control. Therefore, Rural Banks are required to apply risk management. The principles of risk management, including credit risk management, which should be implemented by the Rural Bank adjusted to the business characteristics Rural Bank and harmonized with the provisions concerning the application of risk management in commercial banks. Implementation of risk management as one of its efforts to strengthen institutions and improve the reputation of the Rural Bank industry in the direction of the development policy of Rural Banks. Implementation of risk management attention to their institutional strengthening and improvement of the Rural Bank industry reputation, is expected to create a financial sector that is growing in a sustainable and stable and has high competitiveness.