Collateral and limit management: Exposure monitoring for US commercial bank

Risk events due to misses in generating early-warning signals
Inconsistent methodologies followed by the workforce, 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

Conducted a detailed white-boarding session to identify business requirements needed to provide client with an advanced collateral, limit and margin management process
Analysed and documented current collateral and margin processes across business streams and products
Coordinated a number of collateral and margin projects with change teams from various functions, e.g., Treasury, Risk Management and Client Management
Set up a pyramid-based offshore team considering the complexity of work

Prepared detailed standard operating procedures to ensure compliance with credit policies and client processes
Followed a standardised approach in terms of 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 support to the Global Collateral and Limit Management Teams, with management reporting and customised dashboards for exposure management to mitigate risks and issues

Download as PDF