1、entation”. It also included analysis of ways Hanvit could differentiate its product offerings by customer segment and also provide packaged services where appropriate. Risk Review:The focus here was on providing best practice feedback to help Hanvit establish an independent loan risk review function
2、. Designed to report directly to a “high-level committee of the Board of Directors”, the loan risk review function has key internal “watch-dog” responsibilities to provide a second opinion on risk ratings and to provide an ongoing monitoring function. The loan review function is expected to use all
3、of the same credit risk decision-support tools developed within the CRMS project and it will coordinate closely with the problem loan workout department.Relationship Management:The focus here was on providing best practice feedback to help Hanvit establish clear account management responsibilities f
4、or the relationship manager. This is designed to use organized account reviews and a contact management database to support the RM as the key focal point in the customer relationship. The RM will work closely with the credit teams as well as the product specialists to develop quality commercial busi
5、ness relationships.In addition to these specific process improvement objectives, KPMG has also provided a framework to help Hanvit improve its small business approval process and this is outlined in Chapter 3.0 as well. 2.1.2 Retail CRMS: Overall ScopeThe retail credit analysis process at Hanvit, hi
6、storically, has focused only limited effort on using statistical decision-support models in retail lending. Therefore, the primary objective of CRMS to support retail lending includes: Design and development of a set of retail scorecards to support credit decision-making, monitoring, limits and pric
7、ing analysis Re-design of the retail submission and approval process consistent with the Banks centralized lending strategy and the regulatory requirement to monitor and manage approvals and declines on an ongoing basis2.1.2.1 Retail Decision-Support Applications Application scorecards for secured,
8、unsecured/guaranteed lending and credit cards “Grey zone” scorecards for unsecured loans Behavioral scorecards for secured, unsecured/guaranteed lending and credit cards Limits analysis by score band based upon the combination of income and score-band2.1.2.2 Retail Submission & Approval Process Supp
9、ort branch print application details for underwriting and management of transaction information Support summary analysis of numbers of applications, approvals, declines by type of loan2.1.2.3 Retail Data-Mart Designed to support full implementation and ongoing management of the suite of retail score
10、cards Designed to support retail application submission and approval process2.2CRMS Project ObjectivesIn this section of the CRMS project review we describe the overall objectives of the CRMS project to support better credit risk decision-making. We start with commercial lending and then move onto r
11、etail lending, including secured, unsecured/guaranteed and credit card loans.2.2.1 Commercial CRMS: Specific ObjectivesAs described above in the project review introduction, the overall objectives of commercial CRMS focused on developing better decision-support analytics, improving the overall credi
12、t risk decision-making processes and implementing a credit risk focused data-mart. In this section we describe these objectives in more detail to provide a better foundation for understanding the benefits Hanvit is expected to receive from better credit risk management decisions which are discussed
13、in the following section.Commercial Decision-Support Objectives:The best way to describe the specific objectives for decision-support is to focus on each module individually.(1) Financial Analysis & Forecasting: Real-time, integrated data feeds for KIS data Automated tools for analyzing company, aff
14、iliate and industry financial information Historical industry benchmarking Consistent forecasts of balance sheet, income statement and cash-flow information(2) Shenanigans: Consistent analysis of potential financial data outliers Analytic methodology for identifying and managing related financial da
15、ta outliers(3) Scoring/Rating: Develop statistically-based scoring model using a detailed Korean sample of defaulted and non-defaulted companies Utilize industry best practice analytic methodology (Merton default distance) Develop approach for explicitly calculating default rates and default transit
16、ions Integrate group effect into the statistical analysis Develop consistent, 10-point rating scale (including pluses and minuses or most pass-grades) for both borrowers and loan facilities (individual transactions) Integrate forward-looking approach for cash-flow analysis Integrate CRO fundamental
17、analysis of industry, management etc. to combine with statistical scoring result Develop separate models for audited, non-audited, new and small business borrowers(4) Limits: Develop integrated module encompassing all limits analysis (company, FSS etc.) Develop individual company limit based upon de
18、tailed, forward-looking cash-flow valuation coupled with existing total exposure (external and internal) Create a limit requirement well short of zero-valuation so that the bank does not lend right up to the limit of bankruptcy Integrate portfolio impacts (correlation of new loan with broad portfoli
19、o) of adding new exposure into limits analysis(5) Pricing: Develop NPV pricing model incorporating both specific EL (expected loss) and UL (unexpected loss) factors Incorporate the impact of loan structure into NPV analysis (loan type, base rate, amortization, collateral etc.) Utilize EDF transition
20、 matrix developed by scoring model to incorporate potential default migration(6) Collateral: Develop automated framework for analyzing collateral values on a more dynamic, updated basis Provide tool for monitoring collateral values on a more real-time basis(7) Value-at-risk: Provide an analytic engi
21、ne for analyzing integrated loan exposures Integrate the impact of systematic economic impacts Integrate impact of EDF transitions and loan structure using the pricing tool for re-valuation Integrate the impact of groupsCommercial Process Improvement Objectives:(1) Corporate Marketing: Establish a m
22、ore pro-active, team-based approach to identifying and segmenting corporate customers for their potential to contribute economic value Expand the potential for organized cross-selling Establish use of query tool, integrated with the HAVICS data-mart to support customer data mining (2) Relationship M
23、anagement: Expand the direct custome一伀倀儀刀匀吀唀嘀圀堀夀娀嬀尀崀帀开怀愀戀挀搀攀昀最栀椀樀欀氀洀渀漀瀀焀爀猀琀甀眀砀瘀礀稀笀簀紀縀缀耀舀脀茀萀蔀蘀蜀蠀褀言謀谀贀踀輀退鄀錀鈀鐀销阀需頀餀騀鬀鰀鴀鸀鼀一伀倀儀刀匀吀唀嘀圀堀夀娀嬀尀崀帀开怀愀戀挀搀攀昀最栀椀樀欀氀洀渀漀瀀焀爀猀琀甀瘀眀砀礀稀笀簀紀縀缀耀脀舀茀萀蔀蘀蜀蠀褀言謀谀贀踀輀退鄀鈀錀鐀销阀需頀餀騀鬀鰀鴀鸀鼀氀鐀搀攀昀最栀椀樀欀氀洀渀漀瀀焀爀猀琀甀瘀眀砀礀稀笀簀紀縀缀耀脀舀茀萀蔀蘀蜀蠀褀言謀谀贀踀輀退鄀鈀錀鐀销阀需頀餀騀鬀鰀鴀鸀鼀耀舀搀夀脀樀戀脀騀謀漀茀蔀耀焀餀堀唀萀昀贀嬀茀挀栀蜀蔀爀吀餀嘀縀攀椀夀脀唀倀谀退挀謀挀謀“挀甀一唀紀圀唀紀儀謀言漀挀一开蔀儀錀一一怀谀缀餀攀爀匀耀琀挀KK洀氀销嬀謀稀餀鰀鬀耀蜀谀褀愀茀蠀愀脀笀茀刀挀夀圀甀錀椀娀阀愀褀爀唀礀倀娀栀言夀蜀鸀尀戀蠀蠀蜀儀氀阀吀倀昀笀瘀鸀鼀氀愀匀爀騀最蠀洀餀伀眀
