3600 Total Risk Management Platform

Client Management

The ARX Credit Origination and Management module enables the relationship manager to manage the institution's relationship with its clients in an effective and efficient manner. With banking relationships becoming increasingly complex, the relationship manager needs to ensure that the client coverage teams which interact with clients share all relevant information regarding client needs and the product offerings. Further, it is essential to closely track wins and losses in order to maximise future performance.

Performance Evaluation

ARX Credit Origination and Management module has the ability to track the performance of the relationship manager by generating specialized reports which monitor:

  • The conversion of leads into clients
  • The number of and type of calls made to clients
  • The number of proposals sent for approval, and track proposals which were approved or rejected, together with the reasons for any rejections.

Credit Approval Initiation and Processing

ARX Risk Management solution provides a sophisticated online Credit Approval System which comprises information gathering, data analysis, credit decisions and pricing, reporting and administration.

The software can be variously customized according to a bank's needs, and the entire process can be administered by one or many departments depending upon the bank's organizational structure. ARX Risk Management involves relationship managers and supervisors, risk managers and product managers (where necessary) as part of the credit approval chain. The system is built on a hierarchical tree with the ability to manage different credit approval limits and the rights to edit and archive the approval limits for future reference.

Credit Monitoring

ARX has designed a platform to monitor and control risk factors applicable throughout the life of a loan. The Loan Monitoring Unit monitors the loan repayment status by ensuring the adherence to the covenants which were the basis of credit approval. It does this after the credit is approved but before the loan is disbursed and in subsequent periods as may be specified in the approval.

Collateral Management

The Credit Approval module specifies the necessary covenants and collateral which are required to support the credit. The Collateral Management module has the ability to record, manage and share collateral-related details for various loan portfolios.

  • Collateral Classification The module handles all types of collateral for various loan portfolios on an on-going basis.

  • Collateral Sharing Common collateral may be pledged by more than one borrower so collateral may need to be shared by a number of facilities or by different subsidiaries. The Collateral Sharing Module allows Collateral to be shared in the following contexts:

    • By the same company.
    • By different subsidiary companies.
    • Guarantee by the parent company.

Loan Loss Provisioning

The module offers the flexibility to customize haircut percentages by maturity, by debt and other collateral types, by guarantee types and for currency mismatches.

The loan loss allowance is calculated across all grades of loan classification, with the flexibility to customize the weights and provision rates. It can be customized in line with individual bank's requirements.

Recovery of Problem Loans

The system has a framework for monitoring and tracking the recovery of problem loans. It generates automatic alerts for actions required to be taken by the recovery team which ensure effective recovery process.