【正文】 ties (. anizational dependencies, KPIs, performance measures, etc) related to ensuring credit risk grading effectiveness Evaluation and Assessment Credit Approval Risk Appraisal Pricing Calibration of CRR Policy setting for Usage Policy/System Setup Credit Appraisal/Renewal Review Key Performance Indicator Skills Culture ? Accuracy and timeliness of evaluation reporting ? Good loan processing record ? Objectiveness,fairness and efficiency in credit approval ? Overall objectiveness and fairness in the assessment ? Timeliness in report writing and delivery ? No performance evaluation criteria ? No performance evaluation criteria ? Weak problem identification capability ? Years of experience of credit evaluation ? Weak at credit and customer records caparison ? No specific responsible personnel ? Preliminary understanding of customer‘s credit strength which is mainly based on financial indicators ? Basic regulation and policy definition Roles Responsibilities ? Periodically evaluate the performance of the loan to ensure repayment ? Approve the qualified facility and loans ? Remark and articulate the potential benefits and risks ? No specific responsible personnel ? Responsible for preliminary report and regulation Illustrative Key Area to Probe ?What‘s the overall anizational fitness to BoS‘s current and future risk grading system ? ? What is the roles and responsibilities set currently for each position ? ? What is the current performance evaluation criteria and indicators of each position in the risk grading? ? What are skills and capabilities requirement of each position ? ? What is the credit risk management culture in BoS? Credit Risk Grading Analytics . Kearney 37/2341 Bank of Shanghai – Credit Risk Management/Credit Proposal/yk 19 . 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 The process baseline will ensure clear understanding of the current/required processing capabilities (. policy setting, appraisal, approvals, review, etc.) related to ensuring credit risk grading effectiveness Level 2 Details Provided Note: (1) CRR = Credit Risk Rating System。 ICTP = Integrated Core Transaction Processing system (2) Submit credit application directly to Branch Credit Management or through Branch Corporate Banking accordingly to authority limits III. Risk Grading Process Baseline ICTP CRR CRR Set policy on use of CRR Model Review approve policy New application Risk Management Committee Branch Corporate Banking SubBranch Corporate Banking Branch Credit Management HQ Credit Management HQ Corporate Banking Evaluation and Assessment Credit Approval Risk Appraisal Pricing Calibration of CRR Model Policy setting for Model Usage Input Calibrate the CRR Model Input Review approve CRR Model Prepare credit applications with CRR(2) Make credit decisions Disseminate the CRR Model Prepare credit applications with CRR Inform clients and proceed with loan processing Inform clients and proceed with loan processing Credit renewal New application Credit renewal Report and analyze Input Review approve change Input from CRR database Policy/System Setup Credit Appraisal/Renewal Review Illustrative Key Area to Probe ? What is the normal loan granting and risk grading process of BoS? ? What procedure and how long does it take to go through each linkage of the risk grading process ? ? What are the determinant/ course changing factors in each linkage of the process? ? Who make decision in each linkage of the risk grading process and what‘s their respective authorities? Credit Risk Grading Analytics . Kearney 37/2341 Bank of Shanghai – Credit Risk Management/Credit Proposal/yk 20 . 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 III. Risk Grading Tools Assessment The tools assessment and identification of short/longerterm credit risk grading will identify related tool(s) capability gaps with respect to required capabilities CRR Tools Customer Information Collateral Transaction Records Macroeconomic Conditions Credit Policies Guarantor Customer Grading Facility Grading Analytical Tools EDF Approval Pricing Provision LimitSetting Good, but can be improved Some basic utilization No current capabilities √ Risk grading and pricing tools √ Performance measurement tool(RAROC) √ Individual limit system √ Transaction Model √ Stage of Excellence Client Model Major Tools Not applicable for BoS status quo Illustrative Key Area to Probe ? What are the tools currently used in BoS risk grading system? ? How were the tools developed? ?What are these tools‘ current usage?Are they fully utilized? ? Who are the most frequently users ? ? What are the current users specific requirement? And what are the potential needs and utilization of these tools? Credit Risk Grading Analytics . Kearney 37/2341 Bank of Shanghai – Credit Risk Management/Credit Proposal/yk 21 . 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 III. Risk Grading Capacity Gap Analysis Summary of overall credit risk grading related capability gaps will ensure credit processing risks and issues are identified to minimize risks related to immediate project delivery risks as well as longerterm capabilities imperatives ? …… …… ? The 2 grading systems are separated and have little relationship System integration ? No preloan facility grading ? Postloan f