Collateral and limit management: Exposure monitoring for US commercial bank

  • 100% adherence to credit policies

  • 40-50% reduction in collateral management costs by improving efficiencies

  • Early warning mechanism established to identify exposure collateral

  • 18-20% more client-facing time


CLIENT CHALLENGES
  • Risk events due to miss in generating early warning signals
  • Inconsistent methodologies followed by staff leading to inaccurate collateral tracking
  • Manual process leading to inefficiency and ineffectiveness
  • Talent management and knowledge retention issues, with 50% attrition in a single month
OUR APPROACH
  • Conducted a detailed white-boarding session to identify business requirements in order to provide client with an advanced collateral and margin offering
  • Analysed and documented current collateral and margin processes across business streams and products
  • Coordinated collateral and margin projects with change teams from different functions, e.g. Treasury, Risk Management and Client Management
  • Set up a pyramid-based offshore team considering the complexity of work
IMPACT DELIVERED
  • Prepared detailed standard operating procedures to ensure compliance with credit policies and client processes
  • Standardised approach to collateral tracking, with room for borrower-specific adjustments
  • Established an end-to-end collateral management programme covering perfect lien, collateral analysis, covenant validation and limit availability analysis
  • Provided project management support to the Global Collateral and Limit Management Teams with management reporting and customised dashboards for exposure management to mitigate risks and issues
Thank you for sharing your details

Your file will start downloading automatically

If it does not download within 1 minute,

Share this on

What we have done

Loan booking and deal trading support to a US Commercial Bank
What we are proud of

25-30%

reduction in the request

40%

reduction in client escalations