This review article discusses the importance of credit risk mitigation strategies for financial institutions in reducing exposure to credit risk. It outlines various types of credit risk, including default risk, concentration risk, and systemic risk, and highlights the need for effective strategies to manage these risks. The article presents several credit risk mitigation strategies such as diversification of credit portfolios, collateralization of loans, credit derivatives, and credit insurance. It also emphasizes the role of regulatory authorities in overseeing credit risk management practices and the importance of compliance with regulatory requirements. The paper examines real-world case studies of successful implementation of credit risk mitigation strategies, illustrating both the potential benefits and challenges faced. The article concludes by discussing future trends in credit risk management, including the use of advanced analytics, AI, blockchain technology, and real-time risk monitoring systems. It emphasizes the need for financial institutions to adopt and implement effective credit risk mitigation strategies to ensure stability and profitability in an increasingly complex financial environment.This review article discusses the importance of credit risk mitigation strategies for financial institutions in reducing exposure to credit risk. It outlines various types of credit risk, including default risk, concentration risk, and systemic risk, and highlights the need for effective strategies to manage these risks. The article presents several credit risk mitigation strategies such as diversification of credit portfolios, collateralization of loans, credit derivatives, and credit insurance. It also emphasizes the role of regulatory authorities in overseeing credit risk management practices and the importance of compliance with regulatory requirements. The paper examines real-world case studies of successful implementation of credit risk mitigation strategies, illustrating both the potential benefits and challenges faced. The article concludes by discussing future trends in credit risk management, including the use of advanced analytics, AI, blockchain technology, and real-time risk monitoring systems. It emphasizes the need for financial institutions to adopt and implement effective credit risk mitigation strategies to ensure stability and profitability in an increasingly complex financial environment.