Objective

Provide comprehensive covenant monitoring support to the credit risk team of a global bank to eliminate backlog, correct inaccuracies, and produce a documentary trail for regulatory and internal audits that was entirely absent.

CRISIL's Solution

• Set up a dedicated team experienced in covenant terminology and monitoring
• Studied the bank’s existing processes and set up checklists and process manuals to ensure consistency in tracking quantitative and qualitative covenants for all facilities
• Assumed full ownership of sourcing the relevant documents to free up credit officer bandwidth
• Backed up periodic system updates with covenant analysis documents for documentary evidence
• Quickly identified gaps in existing processes and system glitches; recommended enhancements to client’s internal system
• Accelerated closure of covenant updates in the system to clear existing backlog
• Developed dynamic dashboards for credit officers and senior management to perform quarterly portfolio reviews

Client Impact

• Accelerated closure of monitoring backlogs, achieving regulatory compliance
• In-depth analysis of covenants, enhanced with covenant headroom analysis document
• 100% compliance with regulatory requirements, including documentary evidence
• Strong quality framework for data accuracy and analytics backed by reference guides
• Robust monitoring process set up within the bank’s existing credit risk framework
• Periodic status reports and dynamic dashboards for senior management’s quick reference

Questions

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