Credit risk management has been key apprehension for stakeholders since it is a critical aspect in Nepalese cooperatives. Since regulatory provision in cooperative is not standard as imposed by NRB to banks, it is crucial to study the cooperative movement. Recently, the horizontal and vertical growth of cooperatives has marked some issues such as adverse selection problem, lack of transparency and poor governance system etc. therefore this study has analysis of credit risk management of Nepalese cooperatives using quantitative and qualitative tools.

A cooperative should have a separate department of risk management and follow risk identification process. The management needs to emphasize risk management and its practical implementation. So it is strongly recommended that concerned authorities select an appropriate credit risk management technique in cooperatives.