Collateral and limit management: Exposure monitoring for US commercial bank

  • 100% adherence to credit policies

  • 40-50% reduction in collateral management costs

  • 18-20% more client-facing time

  • Early-warning mechanism established to identify exposure collateral


CLIENT CHALLENGES
  • 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
OUR APPROACH
  • 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
IMPACT DELIVERED
  • 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
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What we have done

Augmenting support across the treasury lifecycle for US regional bank
What we are proud of

>50%

savings in staffing costs

25%

increase in outreach