A friend once defined proactive as “being reactive sooner rather than later.” In truth, action always comes down to a matter of timing.
Looking for answers in a bank’s vast data repositories follows the same theory. Today most credit risk personnel go after data to find answers either in a proactive manner or a reactive manner. What drives your approach is the timing. 
In other words, do you need an immediate answer such as in a crisis situation?  (the bottom has dropped out and I need to know my concentration now!)    
Or is it in anticipation of things to come? (what happens if the bottom drops out?) As you pull together the necessary data to create reports to fulfill a particular request for information, knowing what is driving the request will help you identify the right data for the right situation. In turn, this will ultimately deliver stronger, more accurate results with which to effectively manage risk.

Risk management isn’t just for big banks. Small and medium-sized banks  should also apply risk management principles.
There are three methods of risk management:
Avoidance of risk
Assumption of risk (either knowingly or unknowingly)
Allocation or transfer of risk           
Risk avoidance limits growth potential. This article will discuss the last two options.
Assuming risk should be done knowingly. When a company grows, it assumes risk, but it should do so prudently by comparing its exposure to loss to its potential gain.
Allocation or transfer of risk lets a bank assume more risk without entirely bearing the exposure to loss. The bank transfer can transfer most of the risk to an insurance company while retaining part of the risk through the use of deductibles, coinsurance and limitations.