Welcome to Federal Credit Fridays! The U.S. government is one of the largest lenders and credit guarantors on earth. Its portfolio is estimated at over $3.6 trillion, as measured by loan assets and the face value of loan guarantees. The government uses credit for a wide variety of policy missions, including housing, higher education, small businesses, rural and urban economic development, infrastructure, and export promotion, among others. This podcast will familiarize you with the vast world of federal credit, the similarities and differences between these programs, and the importance of their work to achieving policy missions within the framework of public-private collaboration.
In this episode of Federal Credit Fridays, Anthony Curcio is joined by Andrew McCabe to discuss how credit risk management in federal lending has evolved—and why the 2013 OMB Circular A-129 remains a turning point for federal credit programs.
The conversation highlights the growing role of Chief Risk Officers (CROs) in balancing independence with collaboration. As McCabe explains, risk management should not act as a barrier to lending, but rather as a partner that strengthens loan origination and portfolio management. Embedding risk management early in the process helps agencies avoid costly mistakes while ensuring programs remain both effective and compliant.
A few key takeaways include:
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Risk management serves as a bridge between origination and portfolio oversight.
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Effective CROs prioritize communication and collaboration with leadership.
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Hiring experienced professionals and fostering continuous education enhance program success.
Ultimately, strong risk governance in federal lending depends on the human element—listening, communicating, and collaborating. For aspiring CROs, the message is clear: success lies in striking the right balance between independence and support.
Tune in to the full episode to hear more insights on building effective credit risk strategies.
