【正文】 Strengthening Risk/Reward Management Capabilities . Kearney Inc 2023年版 權(quán) 所有 ， 此文件任何部分未 經(jīng)科爾尼管理顧問公司事先書面 同意 ，均不得以任何形式 復(fù)制 Proposal For Assistance July 23, 2023 Strictly Confidential . Kearney 37/2341 Bank of Shanghai – Credit Risk Management/Credit Proposal/yk 1 . Kearney Inc 2023年版 權(quán) 所有 ， 此文件任何部分未 經(jīng)科爾尼管理顧問公司事先書面 同意 ， 均不得以任何形式 復(fù)制 Today’s Discussion I. Our understanding of BoS‘ current situation II. Our perspective on proposed initiatives and expected results for BoS III. The efforts would focus on delivering tangible results IV. We have proposed a handon highcaliber team to jointly work with the BoS team V. We have strong mitments to BoS VI. Appendix — Project Consultant‘s CVs . Kearney 37/2341 Bank of Shanghai – Credit Risk Management/Credit Proposal/yk 2 . Kearney Inc 2023年版 權(quán) 所有 ， 此文件任何部分未 經(jīng)科爾尼管理顧問公司事先書面 同意 ， 均不得以任何形式 復(fù)制 Today’s Team Year of Experience 7 Name Hong Li Manager, Shanghai 11 Peter Koo Position Principal,Shanghai 10 Douglas E. Jackson Manager, Singapore Relevant Expertise and Experience ? Helped domestic and international financial institutions in strategy and process design ? Extensive experiences in banking and insurance industries ? Consulting experiences focus on providing credit risk management solutions to domestic and global banks ? Led many strategic design and system development projects for Banks in Singapore and rest of Asia ? Various consulting and industry experience in international financial institutions ? Expertise in credit management, underwriting and processing 5 Victor Du Senior Business Analyst, Shanghai ? Helped domestic and international panies in operations improvement and change management ? Experiences in Finance and MA 2 Michael Yao Business Analyst, Shanghai ? Developed a review of China securities market by identifying key players and respective strategies, studying market trends and assessing government regulations ? Participated the proposal writing of designing a onlineportal for a leading stock exchange in China 8 Je Azevedo Manager, Brazil ? Extensive experience in risk and capital management ? Development and implementation of a prehensive credit risk management approach covering anization, technology, processes and statistical models in one of the largest Brazilian banks ? Diagnosis of the current situation in one of the largest Brazilian banks . Kearney 37/2341 Bank of Shanghai – Credit Risk Management/Credit Proposal/yk 3 . Kearney Inc 2023年版 權(quán) 所有 ， 此文件任何部分未 經(jīng)科爾尼管理顧問公司事先書面 同意 ， 均不得以任何形式 復(fù)制 Today’s Discussion I. Our understanding of BoS‘ current situation II. Our perspective on proposed initiatives and expected results for BoS III. The efforts would focus on delivering tangible results IV. We have proposed a handon highcaliber team to jointly work with the BoS team V. We have strong mitments to BoS VI. Appendix — Project Consultant‘s CVs . Kearney 37/2341 Bank of Shanghai – Credit Risk Management/Credit Proposal/yk 4 . Kearney Inc 2023年版 權(quán) 所有 ， 此文件任何部分未 經(jīng)科爾尼管理顧問公司事先書面 同意 ， 均不得以任何形式 復(fù)制 I. Our Understanding of BoS’ Situation Our refined proposal has been based on the relevant information provided by BoS within the past week Relevance of Information Received from BoS Stated BoS Credit Risk Management Imperatives Category Reports/Documents Relevance to Risk Grading Relevance to Portfolio Management Customer Info. ? Basic Information 5 1 ? Capital Structure, Management, etc. 5 2 ? Financial Reports (P/L, B/S, C/F) 5 2 ? Financial Ratios 5 2 Transactions Summary ? Exposure by loan size 2 4 ? Exposure by borrower size 2 4 ? Exposure by borrower ownership 2 3 ? Exposure by collateral type 2 4 ? Exposure by maturity 2 3 ? Exposure by industry 2 5 ? Exposure by loan performance 2 5 ? Exposure by customer rating 2 5 ? Exposure/percentage by facility rating 2 5 ? Exposure and facility rating by industry 2 5 Other Information ? Organization of the Bank 2 3 ? Credit approval processes 4 4 ? Summary of phases 1 2 of IT development, and plan for phase 3 4 3 Source: Bank of Shanghai, ATK Analysis Degree of Relevance Low 1 5 High . Kearney 37/2341 Bank of Shanghai – Credit Risk Management/Credit Proposal/yk 5 . Kearney Inc 2023年版 權(quán) 所有 ， 此文件任何部分未 經(jīng)科爾尼管理顧問公司事先書面 同意 ， 均不得以任何形式 復(fù)制 Based on the information provided, bined with our credit experience, we have concluded that BoS‘ current state may be still lagging as pared to emerging relevant practices in Asia Comparison of BoS with Common Asian Practices Customer Grading Facility Grading Portfolio Management BoS’ Current State Emerging Relevant Practices in Asia ? Combination of statisticsbased and expertbased rating methodology ? Consider the customer transaction records ? Link the risk rating with EDF estimation ? Strict uplimit setting for facilities based on different ratios ? Statistics and expertbased ? Conducted during the approval process (preloan) ? Basis for pricing ? Purely expertbased judgmental methodology ? Static informationbased, not considering customer transaction records ? No statistics of EDF ? No strict uplimit setting for facilities ? Expertbased and judgmental ? Conducted after the loan ? Mainly used to meet the regulatory requirements ? Partly used in monitoring and control ? Portfolio management functions in place ? Conducted preliminary positioning and targeting ? Preliminary concentration control and limits ? No portfolio management functions ? Different products are handled separately (. retail and international businesses) ? No clear concentration control and limit . Kearney 37/2341 Bank of Shanghai – Credit Risk Management/Credit Proposal/yk 6 . Kearney Inc 2023年版 權(quán) 所有 ， 此文件任何部分未 經(jīng)科爾尼管理顧問公司事先書面 同意 ， 均不得以任何形式 復(fù)制 As such, we have conclud