how can i reduce my credit exposure 
if you re a lender and want to reduce your credit exposure consider the types of loans you re offering and who you are loaning to riskier longer term loans will increase your credit exposure as there is often a greater chance of default to minimize your exposure at default consider shorter term loans loans substantiated by operating cash flow loans to higher creditworthy customers and conduct more thorough due diligence prior to issuing a loan the bottom linelending is an inherently risky undertaking banking institutions use metrics like ead to make wise choices about who they lend to since they ultimately must answer to their investors credit exposure is an issue in most industries and ead is one of the banking world s primary tools to combat loan loss 