Lending is a key business activity in the financial services sector. The loan portfolio is one of the largest assets and a chief source of revenue for banks, but is also a great source of risk to a bank’s safety and soundness. Whether due to lax credit standards, poor portfolio risk management, or weaknesses in the economy, loan portfolio problems have historically been the major cause of bank losses and failures. Identifying control breaches, anomalies and high-risk activities early, and employing a firm remediation strategy, often prevents, and certainly minimizes, the impact of any potential impairment of the portfolio.

The CaseWare™ Monitor Loan Portfolio solution automates the definition of governance, risk and controls within a financial institution's lending process. The financial institution can then define the control environment from loan origination to servicing and portfolio management. Once completed, the monitoring framework examines all electronic activity to detect control breaches and alert the relevant personnel automatically.

Continuous monitoring of the loan portfolio allows stakeholders to quickly determine, by review of electronic records, any activities or conditions that require attention before they become problems.

Key benefits include:

• Better risk management
  Immediately detect anomalies and errors that are not in accordance with company or regulatory policies as they relate to approval limits, schedules, refinancing, delinquencies, etc.

• Proactive management of the portfolio
  Immediately recognize loans in arrears or improper disbursements to prevent a negative impact on the balance sheet.

  Loan Portfolio Monitoring Solution Overview