Credit risk management can be divided into the preventive steps lenders take before issuing a loan and the use of incentives and disincentives after loan disbursement to extract timely repayment. Prior to issuing a loan, a lender reduces credit risk through controls that reduce the potential for delinquency or loss, such as loan product design, rigorous client screening, and client orientation to expectations and procedures. Once a loan is issued, a lender’s risk management expands from controls that reduce the potential for loss to controls that reduce actual losses. As such, delinquency management procedures are key components of credit risk management. This section addresses four key credit risk controls: (1) loan product design, (2) client screening, (3) credit committees, and (4) delinquency management.