1 Statistical based flexible Early Warning calculation engine
The system works with an individually defined, extendable set of automatically or manually generated early warning signals. The monitored information, the sensibility of automatic signal generation as well as the “strength” of the signal are determined by business rules and are freely parameterizable by the Bank’s professionals. Signals can be, for example, decreased account turnovers, late payments, changes of client rating or information from an external credit blacklist.
2 work flow based escalation process
The classification process is started automatically by business rules that analyze the warning signals and propose an initial rating of the client. Business and risk management experts rate the client as well and decide about the action to be taken through an approval process. A 360° client overview, including client group information, supports decision making.
3 Action plans and handling of risk mitigation tasks
Above the recognition of problems the system supports to manage them with the creation of overridable action plans – based on the indicator signals – and generation of new tasks to each action (rerating). The system inspects the allocation, execution and rescans of tasks.
4 Integrated loan monitoring module
The Monitoring module supports the regulatory requirement of periodic client review. The system automatically prepares monitoring sheets about the client (client base data and exposures) and assigns them to responsible users for evaluation. In the monitoring sheet the exposures of the client are rated individually, and the approval process is guided by a workflow.