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What forms of security or risk mitigation can support extending credit? What KPIs measure credit control effectiveness? How do you manage credit risk for a concentrated customer base? How does credit control balance revenue growth with risk in practice?
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How do you set a credit policy's approval authority matrix?

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Answer

An authority matrix maps credit-limit sizes and risk levels to who may approve them—e.g., analysts approve up to a threshold, managers higher, and executives the largest or riskiest. It enforces segregation and proportionate scrutiny, speeds routine decisions, and ensures large exposures get senior sign-off.
Real-world example Limits up to $25k are approved by the credit analyst, $25-100k by the manager, and above that by the CFO.

Common follow-ups: Why tie approval level to limit size? | How does the matrix speed decisions?

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