You had recently applied for the post of Chief Credit Risk Officer (CCRO) in a hotel. You have been short listed to make a presentation to the board members. As part of the presentation, you are requested provide responses to the key items listed below.

i. How does credit risk for a hotel differs from default risk?

ii. What are the challenges faced by a financial institution to measure credit risk?

iii. As a potential CCRO of the hotel, what three techniques you will use to evaluate credit requests for corporate customers?

iv. Briefly explain 3 methods to control credit risk within a hotel.