Credit risk services
RSM’s customized solutions are designed to maintain an effective credit risk management function, helping you gain confidence in your financial institution’s approach to credit risk.
Many financial institutions struggle with credit risk management activities because they lack the available workforce to review and document critical processes. Despite these operational and resource constraints, deploying a comprehensive credit review function remains one of the most effective activities within the credit risk management framework.
RSM’s credit risk solutions are designed and delivered by a team of qualified and diverse credit risk professionals including former regulators, credit analysts, lenders, chief credit officers and CPAs. With this deep understanding of the unique credit risk issues your financial institution faces, we are well positioned to streamline your review and implementation processes for greater efficiency, transparency and confidence.
RSM can help your financial institution meet credit-related needs with:
Outsourced credit review: We utilize proprietary software and dedicated credit review teams to execute your financial institution’s credit review plan.
Co-sourced credit review: Our team takes a tailored approach as your financial institution’s strategic advisor; we perform as much of the credit review function as agreed upon.
Acquisition due diligence: Our advisors assess the credit quality of a target financial institution’s loan portfolio to assess specific reserve accuracy and risk rating practices, and to identify potential credit marks.
Stress testing: We work to develop various stress scenarios that, when used in conjunction with loan review results, help identify credit weaknesses in individual loans. By extrapolating these results, we can assist the credit management function to assess each scenario’s impact on capital and risk rating composition.
Targeted credit review: We assess the credit quality and practices in place for a specific loan portfolio such as a new area of lending, a higher-risk industry/loan type or any part of the annual loan review plan that requires deeper industry insight. Examples of targeted reviews include commercial construction, residential construction, Small Business Administration/government-guaranteed lending programs, mortgage warehouse, foreign-national lending, asset-based lending and floor plan lending.
Quality assurance review: Our team supports your financial institution’s risk management or internal audit departments by performing a review of the loan review department.
Loan staff: Our team—with robust credit review skills and certifications—can be directly integrated into your loan review or audit team.
Policy review: We review the current policies you have in place and provide industry best practice recommendations. This may include assisting with writing new policies or rewriting existing credit policies.
By using our credit risk services and solutions, you can gain confidence in your organization’s ability to better manage credit risk.
Let us assist your business with
The RSM credit review team utilizes Credit Review Assistant, which was built within RSM’s Risk Monitor platform by credit professionals to promote efficiency and consistency with the planning, execution and reporting phases of a credit risk review engagement. The module supports the evaluation of individual loans, borrowers and relationships, which delivers valuable information on your financial institution’s credit risk profile. Credit Review Assistant delivers several benefits, including:
- Improving credit review efficiency: Eliminate the need for manual data manipulation and management, and create a greater opportunity for teams to focus on more valuable technical analysis required of a strong credit review function
- Offering real-time visibility for management: Track project status, open items, risk rating recommendations, observations and evidence of quality control review of individual line sheets
- Creating thorough and consistent reviews through a loan-level approach: Mirror the natural workflow of a credit file, increasing consistency while retaining familiarity
- Promoting reporting clarity, transparency and consistency: Generate comprehensive reporting at the touch of a button, clearly presenting findings and easy-to-understand results to key stakeholders
- Establishing a more direct perspective into key data: Aggregate key data points for risk rating migration analysis, industry trends, concentration analysis, peer benchmarking and stress testing
Addressing credit risk requires more effort than ever. RSM’s credit review consulting services can help your financial institution establish and follow internal credit risk ratings policies, and align with regulatory standards and economic conditions.
Our comprehensive credit review methodology is tailored to meet the unique needs of your institution, regardless of the size and complexity of your loan portfolio and lending activities. Additionally, our proprietary RSM Risk Monitor solution is integral within each credit review engagement, aligning with your credit risk review framework to increase efficiency, reduce time-consuming manual tasks and provide consistency for each review completed. This approach empowers our professionals to provide more timely, actionable insight into credit risk within your portfolio, allowing you to make informed decisions regarding your risk level.
Additional considerations for your business
For complex functions, working with RSM allows you to maintain optimal staffing while addressing critical issues. Our audit, tax and business consulting professionals are available to add value to all types of financial services organizations.
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