Crisil's credit risk expertise drives 25% efficiency improvement for a major European Regional Commercial Bank

• A prominent European regional commercial bank, which caters to global industry leaders, faced a host of challenges in its internal credit risk review process, including handling a sudden increase in urgent requests that required quick response, managing multiple format reviews and maintaining a large portfolio spanning diverse sectors and geographies. These challenges made it difficult to standardise review formats and support the diverse portfolio. The bank had to navigate these challenges while maintaining high standards of quality and efficiency, which required specialised support and expertise.
• Our expertise in providing strong credit analysis and assessment enabled efficient decision-making, ultimately leading to a nearly decade-long association with the bank. The key objectives of the engagement were to provide high-quality credit risk review support, manage urgent requests, and maintain a sizable portfolio across diverse sectors and geographies. By achieving these objectives, the bank aimed to enhance its internal credit risk review process, improve its ability to respond to urgent requests and effectively manage its large and diverse portfolio, thereby supporting its role as a prominent European regional commercial bank catering to global industry leaders.
  

To address the client's needs, Crisil provided a bespoke and comprehensive credit risk review solution that comprised:

• Deployment of a dedicated team with strong domain expertise and a deep understanding of credit risk assessment and rating methodologies to support the client. The team had the flexibility to scale up staffing to meet time-sensitive and peak-load requirements
• Annual reviews for 90+ US and Latin America portfolio investments spanning 12 sectors. The reports included a thorough evaluation of the business risk profile of the counterparty, an in-depth analysis of its latest financial statements and financial modelling with five-year projections, incorporating a peer comparison of the credit profile and assessment of its business strategy
• Periodic quick and short-event notes covering developments and events such as mergers and acquisitions, rating changes and other market changes, which instilled trust in our support service
• Accurate, reliable and consistent credit risk assessment process supported by our robust governance framework and stringent quality control measures, ultimately led to improved credit monitoring and reduced risk exposure for the bank. Valuable strategic insights for the senior management, enabled them to optimise branch profitability, make informed investment decisions and drive long-term growth and success
  

Our solution provided the client with valuable strategic insights, which enabled it to make informed credit decisions, manage risk effectively and maintain a strong reputation in the market. Our credit risk review support services elicited significant benefits for the client, including a 25% improvement in efficiency, reduction in costs and freeing up of bandwidth for its credit officer. We helped streamline the client’s risk assessment process and enhanced credit decision-making capabilities. Through the impactful engagement, we have been able to establish a nearly decade-long association with the client.