The topic of this dissertation is “Influence of credit risk on Zagrebaĉka banka's business”. The paper is divided into seven chapters including the introduction and conclusion and encompasses the definitions of the terms business and credit risk and credit insurance. The paper analyzes and comments the credit operations of banks as well as the importance of determining the creditworthiness of the debtor in aimed at reducing the Bank´s exposure to potential credit risk. The aim of the paper is to describe the banking risk management system with an example of the organization of the Zagrebaĉka banka´s management system. The introduction introduces the importance of credit operations for banks as core businesses by wich the Bank realizes interest income in the long terms. From the first to the fourth chapter business risk is described and how to manage the risks and risks in banking business. The fourth chapter describes details of the credit risk and the importance of credit risk for a banking institution, assessment of placement quality and placement classification in appropriate risk groups, measurement of credit risk, and how to establish a risk management system. In fifth chapter- Bank credit operations, the credit process is described and how is determined the creditworthiness of a potential debtor, credit analysis and risk classification of the client. As special items in this section I describe the approval and payment of the loan placement, and crediting as an important item in the credit process. The sixth item covers loan insurance, describing collateral types or credit protection instruments. In the last seventh chapter – Influence of credit risk on Zagrebaĉka banka´s business with the help of the company´s annual financial report for the year 2017. is analyzed how credit risks impacted on Zagrebaĉka banka´s financial results as well as the increase in value adjustments and loss provisions in the period. The conclusion will be to attempt to synthesize the key elelments of credit risk management and the knowledge acquired through the treatment of the chosen topic.