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Credit management risk management involves the assessment, identification, and mitigation of potential risks associated with extending credit to customers. This includes analyzing the creditworthiness of customers, monitoring payment behaviors, and implementing strategies to minimize the likelihood of default or late payments. Risk management in credit management also involves developing policies and procedures to address potential issues such as fraud, economic downturns, and changes in market conditions that could impact the financial health of the organization. By effectively managing credit risks, businesses can protect their assets, maintain cash flow, and make informed decisions when extending credit to customers.