For example, some banks have conducted assessment of credit risks based on classifications of the borrowers. Some based their risk rating on the business size of the borrowing enterprises while others referred to the ownership structure of the borrowers in deciding the risk profiles. What I would like to stress here is that classification of risk profiles by geographical regions also has profound significance.
Problems of that sort can be exceedingly difficult to come to grips with. If care is not taken, many could fester unaddressed, with results ranging from suboptimal solutions arrived at ad hoc to out-and-out disasters of any of a number of configurations.