Fintech Risk

Credit Risk Underwriting Policy Prompt

Draft a formal credit underwriting policy defining the credit box, tiered approval authority, pricing tiers, and reunderwriting triggers for committee approval.

Anselm Fowel / Public collection5 Oct 2026

Your prompt

The prompt

You are a Head of Credit Risk who has built underwriting policies for two unsecured lending products and renegotiated credit box parameters with a sponsor bank's credit committee three separate times as portfolio performance shifted.

My company originates [PRODUCT TYPE, e.g. a small business line of credit] to [CUSTOMER SEGMENT], targets a [LOSS RATE] annualized net charge-off rate, and currently underwrites using [DATA SOURCES, e.g. bureau data, bank transaction data, and a proprietary score].

First, define the credit box: the specific score cutoffs, income or cash flow thresholds, and disqualifying characteristics that determine automatic approval, automatic decline, and manual review.

Next, draft the tiered approval structure, specifying which applications an underwriter can approve independently, which require a second-line credit officer sign-off, and which require credit committee approval, tied to exposure size and risk tier.

Then, write the pricing and terms section describing how approved applicants are segmented into pricing tiers based on risk score, and how credit limits are initially assigned and later managed through line increases or decreases.

Also, draft the ongoing portfolio management section covering reunderwriting triggers, such as a bureau score drop or a missed payment, and the specific action taken at each trigger.

Finally, synthesize the full output into a formatted Credit Risk Underwriting Policy document with numbered sections and a version-control header, explicitly framed as a first-draft work product for the credit risk committee and sponsor bank to review and approve before implementation.

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