Importance of total quality management in credit rating agencies

From the past to the present, human beings have encountered the phenomenon of "quality" in every aspect of their life. The quality that people want to see in every aspect of their life has only joined the management in the last quarter of the twentieth century and has stepped into concreteness. The biggest example of the embodiment of quality is the philosophy of Total Quality Management (TQM). The most important way of sustainable improvement through TQM is achieved by assuring quality and standardizing it in a system. These standards are internationally valid rules that every institution and organization that cares about quality should have. Considering the efforts of all organizations to adopt the TQM philosophy today, Credit Rating Agencies (CRA), which has the power to influence the whole world, should also be sensitive to this philosophy. Even though the credit ratings given by CRAs are a guiding tool for governments and investors, they deeply affect the fate of countries, companies and even the whole World. In recent years, CRAs have been mentioned many times for their inability to predict crises and have become the subject of discussion. CRAs, which could not foresee the crises and bankruptcies that took place, thus breaking the confidence of the market, need some quality standards and audits in order to make an accurate, sustainable and high quality rating in order to regain this trust. The aim of this study is that CRAs, which have the power to affect the world economy, The aim of this study is to analyze the importance of TQM philosophy and the sensitivity of CRAs to this philosophy in order to predict and prevent bankruptcies and crises. In this context, the documents reached via e-mail and accessed from the websites of 3 major rating institutions in the world, Standard and Poor's, Fitch Ratings, Moody's and 5 rating agencies authorized by the Capital Markets Board (CMB) in Turkey, were examined were conducted. Data were created based on the information received. The obtained data were subjected to document review and analyzed using the SPSS 18.0 package program. In line with the findings obtained in the research, it has been concluded that there is a significant difference between 4 organizations that have a quality department and apply TQM principles, and 4 organizations that do not have a quality department and do not apply TQM principles. In addition, when the CRAs in the world and the CRAs in Turkey were compared in the context of the research, it was concluded that the CRAs in the world were more prone and closer to TQM than those in Turkey. However, despite this result, it is obvious that CRAs have deficiencies in the field of TQM and they need to develop themselves more in TQM.