Financial institutions are subject to a huge number of different risks. Credit risk management plays a crucial role in maintaining financial stability and profitability for banks. However, ongoing economic uncertainty continues to pose challenges when assessing the credit quality of borrowers and vulnerable sectors. Failures might lead to higher future bank losses, which could undermine confidence in the banking sector. Global war conflict & pandemic have revealed many flaws in the banking industry which have made banks rethink their current strategies and adjust to the new dynamics. Therefore it is crucial that banks adopt a high-quality and robust approach to credit risk modelling which can be applied consistently over time.