Objective

To revamp and improve the credit risk analysis process of a global investment bank in order to eliminate backlogs, accelerate annual review process, meet peak workload requirements in leveraged finance and support the shift from biannual or triannual credit reviews to an annual cycle.

CRISIL Solution

• Collaborated with the bank to determine the best-fit solution for each portfolio; identified parts of the portfolio amenable to SPARC (our white-labelled credit risk assessment product) and categorized the niche portfolios (leveraged finance and private filers) requiring bespoke service
• Brainstormed and planned for standardization of processes. CRISIL studied the bank’s processes and various templates, identified regional disparities and gaps, and recommended a standardized approach across regions and sectors
• Identified specialized talent for various work streams and conducted training sessions tailored to client requirements
• Leveraging SPARC, CRISIL delivered white-labelled credit memos for 700+ entities. CRISIL added a customization layer to work on proprietary client data
• Through bespoke services, CRISIL conducted annual credit reviews of 600+ regional and private firms, and performed quarterly monitoring of the LF portfolio (250+)
• CRISIL took full ownership of reports with deliveries aligned with the annual schedule of reviews
• Our multipronged quality framework encompassing process manuals, data assurance and analytical reviews ensured a high-quality, ‘decision-ready’ output

Client Impact

• Customization support for standard SPARC outputs drove efficiency gains for the bank
• In-depth analysis of credits quality-checked by SMEs enabled high-quality credit output
• Improved audit results; scored 100% accuracy rating from regulators
• Bank gained the flexibility to ramp up/down coverage for 50% of the portfolio (through SPARC)
• Material cost savings for the bank

Questions

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