Financial reporting provides important information for a business especially in evaluating credit risk. The aim of this study is to propose the framework on application of credit risk management through financial reporting in a business. The framework of the study showed that in order to investigate an application of credit risk management, some elements should be investigated such as determinants of credit management, elements that can influence credit management and elements in financial reporting practices.

Education background one of the important requirements for any types of business in handling with credit risk management issue. Besides that, knowledge and awareness are closely related on credit risk management because a business without knowledge and awareness are unable to handle credit risk wisely. Therefore, this study tries to investigate on the relationship of education background towards credit risk management knowledge and awareness among micro business in Malaysia. The purpose of this investigation is to examine either education background can influence awareness of credit risk management or knowledge of credit risk management. Result from this study shows that education background was influence awareness of micro business towards credit risk management and education background did not influence knowledge of micro business towards credit risk management.