Key Client Challenges

• Significant backlogs in the client’s internal covenant monitoring platform and absence of qualitative commentary and analysis
• Large number of incorrect entries along with system glitches resulted in inefficient monitoring 
• Expertise required in covenant documentation and monitoring to deliver accurate and independent analytical insights 
• Absence of a documentary trail for regulatory and internal audits
  

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 
• 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 review
  

Client Impact

• Accelerated closure of monitoring backlogs, leading to 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 their existing credit risk framework
• Periodic status reports and dynamic dashboards for senior management’s quick reference