Background/Objective

• The bank wanted to strengthen its credit risk management process amid rising backlogs and regulatory asks.
  
• Other matters that needed attention included management of peak workload, lag in updating covenant monitoring tool, high costs associated with risk reviews, lack of standardisation in credit risk assessment memos, and absence of a documentary trail for internal and regulatory audits.

Solutions

• CRISIL GR&RS studied in detail the bank’s processes and co-designed a phased roadmap to transition, streamline and align the identified credit risk management components with industry best practices. 
• This was followed by developing a best-fit solution for each credit risk activity, including covenant monitoring and risk assessment memos, through a hybrid (multi-engagement) model, utilising CRISIL GR&RS’s bespoke and SPARC* solutions to generate optimum efficiencies for the bank.
  
• An 80+ member team was deployed in phases to support the activities across the credit risk value chain, ensuring seamless integration and negligible disruption to incumbent workflow, thereby, fortifying the strategic collaboration

Portfolio coverage

Execution highlights

Client impact

• Strengthened credit risk management framework by enhancing and standardising the risk monitoring processes through implementation of surveillance mechanism and increasing monitoring frequency of leveraged finance portfolio.
  
• Enabled efficient management of peak workload through scalability provided from SPARC support.
  
• Improved data accuracy in covenant tool and created an audit trail through supporting documentation.
• Ensured regulatory compliance and improved accuracy of risk ratings.
• Generated cost savings.
• Improved efficiencies through streamlining of monitoring process and risk memo templates, so that the bank could focus on its core business.

To learn more, contact us at: Contact.CLS@crisil.com

Questions

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