Our client is a leading commercial and retail bank, headquartered in Tamil Nadu looking to enhance and build a robust credit risk framework, in alignment with industry best practices. Founded in 1916, the bank has approximately $760mn in revenue as of 2016. Further, the bank employs approximately 7,200 employees with 800 branches across India. Cedar was mandated to execute a review of the client’s corporate and commercial credit framework and provided key recommendations across industry attractiveness, credit process, underwriting framework, and risk management organisation.
In this program, Cedar conducted a holistic assessment on the client’s internal and external dimensions.
- Conducted an external macro analysis of the Indian banking industry followed by a comparative analysis of the bank against its peers to understand client’s market positioning.
- Interviewed 17 key stakeholders involved in the credit process from origination to risk assessment to monitoring and recovery, and across various locations of the organisation.
- Gathered an understanding of commercial asset book based on industry, segment, product analysis.
- Assessed current policies, standards, and procedures to identify improvement opportunity for book performance and risk profile.
- Reviewed the current risk organisation structure from a separation of concern angle.
- Provided way forward recommendations to the client across financial, customer, process, and organisation.
Cedar provided way forward recommendations across financial, customer, process, organisation areas and implementation guidance to the client.
- Conducted a detailed diagnostic review with areas aligned with best practices, and areas requiring marginal or significant improvement.
- Identified 12 key recommendations across areas of risk, credit process, underwriting and organisation.
- Assisted the client to design an industry attractiveness model for new credit.
- Realigned credit process roles and responsibilities based on sound risk principle of separation of concern.
- Formulated a best-in-class commercial credit and risk framework defined across 5 key pillars, based on industry best practices and designed JD’s to align to new process roles and responsibilities.