Slide 1: Exposure Management Module (EMM) DEMO Presentation
Credit Risk Management System (CRMS) Bankers Serving Bankers Exposure Management Module (EMM) DEMO Presentation © Copyright 6 Sigma Group. Reproduction strictly prohibited 1
Slide 2: EMM Description
EMM Exposure Management Module, EMM is an integrated module to manage, document and evaluate exposures. It is where facilities can be created for obligors and groups and where Collateral, Repayment and Pricing can be captured. It is also where Credit Admin can control the approval and release of lin
Slide 3: The EMM
FACILITY STRUCTURING The EMM 1. Facility Status TERM SHEET per Facility 1. Conditions Precedent 2. Adding New Facilities 3. Adding Sub-Limits 2. Mechanics 4. Approving Facilities 3. Reps & Warranties 5. Releasing Facilities 4. Covenants 6. Matured Facilities 5. Financial Covenants 7. Freezing Facili
Slide 4: EMM Admin, Collateral, Portfolio and Dashboards
EMM ADMIN SECTION COLLATERAL MANAGEMENT 1. Assign Privileges Editing Collateral Data 2. Assign Conditions RAROC Precedent for each Type Producing Profitability by: of Facility (DD CPs) 1. Single Facility 3. Assign Confirmers and 2. Obligor Recipients of Notifications 3. Group for Repayments of 4. Po
Slide 5: EMM Advantages
EMM Seamless Exposure Management • Captures and manages Counterparty and group limits. • Outlines consolidated exposures and drills down to individual facility details. • Allows full control over utilization of lines at all levels, up to Industry and Country portfolio limits. • Manages draw-downs wi
Slide 6: EMM Sections
EMM 1. Facility Structuring 2. Pricing 3. Collateral Management 4. Shared Collateral 5. RAROC 6. Repayment Schedule 7. Term Sheet 8. Credit Administration 9. Portfolio Exposure Management 10. Data Exchange Sections 11. System Administration 12. Dashboards The user can create (a) several facilities f
Slide 7: © Copyright 6 Sigma Group. Reproduction strictly prohibited
7 © Copyright 6 Sigma Group. Reproduction strictly prohibited
Slide 8: Facility Structuring: Facility Status
Facility Structuring There are five states for each facility, each denoted by a color: • For new facilities being Prepared by the user, the color is Red • For facilities that have been Approved, the color is Orange • For those that were Released, the color is Green Facility • For those that have Mat
Slide 9: Adding New Facilities and Sub-Limits
Facility Structuring a) Users add facilities by simply clicking “New Facility” b) Users can always Edit all the fields entered as long as the facility is Adding New Red. Facilities Sub-Limits can also be created for Red facilities, can be offered in currencies other than that of the Parent, and have
Slide 10: Approving and Releasing Facilities
Facility An “Approve” button is provided for Red Facilities. • Once confirmed, all the facilities for that Obligor will be Structuring approved (turn Orange). • For Approved facilities, no more editing can be done by the user. Approving • The Credit Administrator can (a) Edit only the Facility Limit
Slide 11: Matured and Freezing Facilities
Facility a) Each facility has a Maturity Date. b) Once a facility matures its color changes to Black. Structuring c) If the facility matures and outstandings remain present, then a red flag is created, and a notification is emailed to the Credit Administrator and the relationship officer. Matured d)
Slide 12: Adding and Confirming Draw-Downs
Facility Structuring a) Draw-downs can be created for any facility or sub-limit; but only if they are already Adding Released (Green Facility). Draw-Downs b) Draw-downs can be in any currency, and their amounts are converted automatically to the Facility Currency. • When a drawdown is created, a © C
Slide 13: Aggregate Outstandings and Accrued Interest
Facility Structuring Capturing As draw-downs are created, the current outstanding of each Aggregate draw-down will be added to the previously created draw-downs Outstanding to create the Cumulative Outstanding balance in the Facility Currency. Obviously excesses to Facility Limits are not allowed. •
Slide 14: Repayments and Drawdowns
• The Credit Administrator (Maker) can EDIT a draw-down and Facility change its outstanding to reflect full or partial repayments. Structuring However, for each repayment, a Checker(s) needs to acknowledge it. • The system allocates repayments first to Penalties, then Fees, Repayments Interest and t
Slide 15: Facility Pricing
Facility Capture the Facility Pricing is through the button below “Spread” Structuring Facility The Facility Pricing page displays the details such as Cost Base, Past Pricing Due and Prepayment Penalties, and Fee percentage and amounts. 15 © Copyright 6 Sigma Group. Reproduction strictly prohibited
Slide 16: Singular and Shared Collateral
Singular Collateral is accessed using the under “Collateral” Facility Structuring Collateral Data includes: a) Collateral Risk Rating (CRR) and Loss Given Singular Default (LGD) that is used in Weighted Average Collateral (WA) LGD calculation (PRR and IFRS 9 purposes) b) Collateral Value columns inc
Slide 17: Repayment Schedule
Facility Access to the Repayment Schedule is by selecting under “Maturity Date” Structuring After entering the required fields and clicking “Done”, the system will generate and provide the full repayment schedule. The selection criteria for repayments is as follows: Repayment 1. Repayment Type (Amor
Slide 18: © Copyright 6 Sigma Group. Reproduction strictly prohibited
18 © Copyright 6 Sigma Group. Reproduction strictly prohibited
Slide 19: Collateral Management Section
Collateral • Where Singular and Shared Collateral can be entered and edited. Management • The selection of collateral security can be done through Collateral, Section Facility or Obligor IDs. Data can be configured by the Administrator and include: 1. Description 12. Account/Serial/Policy No 2. Curr
Slide 20: © Copyright 6 Sigma Group. Reproduction strictly prohibited
20 © Copyright 6 Sigma Group. Reproduction strictly prohibited
Slide 21: Credit Administration Section
Credit Administration Section The Credit Administration section is where the controls over Facility Utilization are exercised. This section is reached either directly from Credit the main screen in which case the Facility or Obligor ID need to be Administration entered, or from pressing the Approve
Slide 22: Check and Approve; Check Adherence to T&C
Credit Administration a) For confirming approval of facilities after the credit application is Section approved. b) Credit Admin to confirm or otherwise that the facilities in the Check and system are as per the approval without super-imposed conditions. Approve c) If such conditions are imposed, th
Slide 23: Confirm Release and Repayment of Draw Downs
Credit Administration Section a) Where all drawdowns that were created and are ready for Confirm Confirmation/Release are listed. Release of b) The Credit Administrator (Checker) can choose which to confirm Draw Downs by pressing the © button. c) Once pressed, email notifications will be sent to tho
Slide 24: Monitor Covenants; Diarize Pending Actions
Credit Administration Section a) Monitor covenant adherence, in which the Credit Administrator Monitor checks on each covenant that was present in the original Facility Covenant then approved in the Credit Application, and confirms Adherence adherence. b) If there is a breach in any of the covenants
Slide 25: Produce Reports
Credit Administration Section • Which covers an extensive list of reports that can be produced by the system for all concerned. • The reports are Produce produced as pdfs and Reports can be forwarded by the user who produces them. • For customization of individual reports please contact your account
Slide 26: Notify Clients of Pending Actions
Credit Administration Notify Clients of Pending Actions which covers an extensive list of issues: Section Notify Clients of Pending Actions The user simply indicates how far forward the system needs to check pending actions and dues, and the report is either Printed in pdf, or sent by email to the R
Slide 27: Generate Client Letters
Credit Generate Decline Letters Administration In this section, the Credit Administrator can generate a Decline Letter Section advising clients of the lack of bank appetite for their business. Generate Marketing Letters In this section, the Relationship Officer can generate Marketing Letters using t
Slide 28: © Copyright 6 Sigma Group. Reproduction strictly prohibited
28 © Copyright 6 Sigma Group. Reproduction strictly prohibited
Slide 29: RAROC Section
RAROC Section • Where the Risk Adjusted Return on Capital (RAROC) is calculated by facility, obligor or group. • This section can be accessed directly from the screen or through a particular facility. • If accessed directly from the screen, the user would have to select the Facility ID or Obligor ID
Slide 30: Term Sheet Section
Term Sheet Section This Term Sheet section is where the terms and conditions associated with each facility can be entered. These include the following: 1. General Data on the Obligor and all its Facilities. 2. Conditions Precedent (CP) associated with this Facility. 3. Mechanics of Drawdowns (how th
Slide 31: Portfolio Exposure Section
Portfolio Exposure In this section, the Credit Administrator can manage limits at Section portfolio levels that include the following totals: 1. by Country 2. by Industry 3. by Facility Type 4. by Collateral Security 5. by Single Risk Names Portfolio 6. by Obligors Exposure 7. by Business 8. by Faci
Slide 32: Data Exchange Section
Data Exchange Section In this section, the rules for transferring data in and out of the system are set. These include rules for Imports and Exports to third Data Exchange party systems such as SWIFT, Accounting Systems, and Core Banking Systems. 32 © Copyright 6 Sigma Group. Reproduction strictly p
Slide 33: © Copyright 6 Sigma Group. Reproduction strictly prohibited
33 © Copyright 6 Sigma Group. Reproduction strictly prohibited
Slide 34: Admin Section: Groups, CPs, Notifications
Admin Section Assign Groups a) Creating Groups of users who access the system. The Admin/ assignment is done by User ID. Assign Groups b) Assign which parts of the system these groups are entitled to access. • To confirm draw-downs, the Checker has to ensure that all the Assign CPs for documents and
Slide 35: Admin Section: Notification Recipients
Admin Section When any of the following events take place, a specific assigned user is notified: 1. Creation of Facility 2. Approval of Facilities 3. Release of Facilities 4. Maturing Facilities Assign Recipients 5. Frozen Facilities of Notifications 6. Confirmation of Drawdowns Creation 7. Confirma
Slide 36: Admin Section: Collateral Data Sets
Admin a) For every type of collateral, a list of up to 40 associated data can Section be entered. b) The list is created by the Admin (first 11 are universal). c) Once the list is created, then every time the user selects a collateral type, the list associated with that collateral type will appear t
Slide 37: Admin Section: Beneficiaries, SWIFT, Nostro
Admin Section a) Listing of Beneficiaries by Obligor so that when payments are List Beneficiaries made, they are selected automatically. b) Capturing their SWIFT details including Bank Accounts, validating the SWIFT codes and IBANs, and ensuring cross references are done across the system. • Capturi
Slide 38: Admin Section: Cost Base and FX Rates
Admin Section a) Creating a list of all the Cost Bases used in the system when capturing Pricing (under Facility Structuring). Update Cost Base b) Each Cost Base has a specific Rollover Period, which is the period that locks in the interest rate in days. For example: Libor 1M carries a rollover peri
Slide 39: © Copyright 6 Sigma Group. Reproduction strictly prohibited
39 © Copyright 6 Sigma Group. Reproduction strictly prohibited
Slide 40: Dashboards Overview
Several Executive Provides an overview of the bank’s credit portfolio, market indicators, and operational aspects of processes and procedures. Provides a detailed breakdown of the Portfolio Risk Rating, Risk Management broken down by Industry and Stress Testing Results Provides a snap-shot of limit
Slide 41: Dashboards: Executive
Dashboards Executive 41 © Copyright 6 Sigma Group. Reproduction strictly prohibited
Slide 42: Dashboards: Risk Management
Dashboards Risk Management 42 © Copyright 6 Sigma Group. Reproduction strictly prohibited
Slide 43: Dashboards: Portfolio
Dashboards Portfolio 43 © Copyright 6 Sigma Group. Reproduction strictly prohibited
Slide 44: Dashboards: IFRS
Dashboards IFRS 9 44 © Copyright 6 Sigma Group. Reproduction strictly prohibited
Slide 45: Dashboards: Operations
Dashboards Operations 45 © Copyright 6 Sigma Group. Reproduction strictly prohibited
Slide 46: Dashboards: Notifications
Dashboards Notifications 46 © Copyright 6 Sigma Group. Reproduction strictly prohibited