Collateral Damage: What the Crisis in the Credit Markets Means for Everyone Else

Given the dramatic events in the capital markets, everyone is wondering what will happen next—and what the implications are for the wider economy. Learn about the crisis both in the capital markets and the wider economy; explore likely future economic scenarios and the challenges facing companies outside the financial sector—and discover the actions your company should take in order to respond to these challenges.

Featured Software Research:

Keeping Score: Evolving Wholesale Credit on a Maturity Model

  • Source: IBM
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The inner workings of a global financial institution can contain literally hundreds of systems in which credit risk is recorded. This risk may be managed with dozens of different, disparate systems, which can appear to be an overwhelming and resource-intensive process. This is where a maturity model comes into play. A maturity model scorecard provides banks with a single point of reference to understand what they are, where they wish to go, some practical ideas about where to start, and how to do it most cost-effectively. Read More

Using Chatter with FinancialForce Accounting for Better Credit and Collections Collaboration

Collaboration is a key part of credit and collections, both in avoiding disputes and resolving them. Effective information sharing can go a long way. This research paper presents two use cases that involve four main factors for enabling sell-side collaboration: recording, storing, sharing, and accessing of data. They have used Chatter on the Salesforce1 platform in an effort to support those collaborative processes by both providing full account visibility to all stakeholders and tracking conversations to keep everyone informed. The key is to find a user-friendly, intuitive approach to communication and data storage that encourages adoption. Read More

Credit Risk Management: Collateral, Covenants and Risk Review

  • Source: IBM
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If your organization is still managing credit risk manually, you could be leaving your company open to experience significant losses and complications that can harm its financial well-being. Multiple systems, piles of paper, inconsistent or out of date information- all could end up costing your company dearly. Today, the best way to ensure that credit risk is being appropriately monitored and managed is with the adoption of an automated system. With the implementation of an automated system, accuracy of data and efficiency of execution are significantly improved, and risk is monitored in a superior and more effective manner.

In this white paper, IBM highlights the benefits that an automated system for credit risk management can bring to your organization, including a reduction of human error on multiple levels, a marked increase in compliance, the capability to quickly track a data trail, and the capacity to effortlessly update and upgrade across multiple accounts and systems. Automation means valuations are up to the minute, and that transparency is increased. Document imaging, data entry, and automated workflow can resolve many problems previously encountered with manual procedures.

IBM’s Business Analytics offers a comprehensive 5-point action plan involving the importance of automating collateral processes, how to consolidate diverse systems and data, the benefits of automating collateral and covenant monitoring to reduce risk with the latest available information, and how automation supports release processes for minimized risk. Credit risk management can be modernized and refined as a result of changing towards an automated system. Read More

You may also be interested in these related documents:

Credit Risk in the US Energy Industry: CNRA and Its Implications

The US energy sector has experienced recent loss of counterparty confidence. To offset this, managing credit risk has become paramount. Knowing what the risks are is just the start—risk mitigation methods must be used to reduce overall credit risk exposure and to free up capital resources. Find out three key ways to mitigate risk, and how a clearing, novation, and release agreement (CNRA) can help guarantee collateral. Read More

Evolution for Efficiency: Active Collateral Management

  • Source: IBM
  • Written By:
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In a post-crisis financial landscape, regulators are implementing policies that are driving firms to secure financial transactions with increasing amounts of collateral and clear more financial transactions through central counterparties. Reactionary industry debates on the effectiveness of these new measures are now giving way to practical discussions on how individual firms can adjust their business practices to succeed in this new environment. Read More

Credit Risk Management: Collateral, Covenants and Risk Review

  • Source: IBM
  • Written By:
  • Published:
If your organization is still managing credit risk manually, you could be leaving your company open to experience significant losses and complications that can harm its financial well-being. Multiple systems, piles of paper, inconsistent or out of date information- all could end up costing your company dearly. Today, the best way to ensure that credit risk is being appropriately monitored and managed is with the adoption of an automated system. With the implementation of an automated system, accuracy of data and efficiency of execution are significantly improved, and risk is monitored in a superior and more effective manner.

In this white paper, IBM highlights the benefits that an automated system for credit risk management can bring to your organization, including a reduction of human error on multiple levels, a marked increase in compliance, the capability to quickly track a data trail, and the capacity to effortlessly update and upgrade across multiple accounts and systems. Automation means valuations are up to the minute, and that transparency is increased. Document imaging, data entry, and automated workflow can resolve many problems previously encountered with manual procedures.

IBM’s Business Analytics offers a comprehensive 5-point action plan involving the importance of automating collateral processes, how to consolidate diverse systems and data, the benefits of automating collateral and covenant monitoring to reduce risk with the latest available information, and how automation supports release processes for minimized risk. Credit risk management can be modernized and refined as a result of changing towards an automated system. Read More
 
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