Loan review from a locked universe, with a reviewer independent of the credit.

Credit risk review starts from a dated loan universe. Your team imports it from a CSV or XLSX loan listing, such as a core trial balance export, or enters it loan by loan. Locking the universe stamps its loan count, its total commitment, and a content digest, and from then on the universe cannot change.

• 01Each loan carries its segment, commitment, balance, officer rating, and optional regulatory classification.
• 02Watch list, policy exception, insider, nonaccrual, restructured, and past due flags are kept for scoping.
• 03The universe holds loan numbers and descriptions only, and no borrower names.

A credit review samples a locked universe on a risk-based scope. Every in-scope loan at or over a commitment threshold, or carrying a flag the scope names, is reviewed. The rest of the in-scope population is sampled by the method the review chooses, and the selection is sealed with a digest.

• 01Sample methods are random, statistical, judgmental, and full population.
• 02A statistical sample records its confidence level, tolerable rate, and expected rate.
• 03A random or statistical draw records its seed, so the same universe, scope, method, and seed reproduce the same selection.

Each sampled credit is assigned to a reviewer, and a reviewer who originated or approved the credit cannot be assigned to it. That block has no override. When an originator or approver in the listing does not match a team member, the credit is marked unverified, and the reviewer attests to no involvement before completing it.

• 01The originator and every approver are compared with the reviewer at assignment.
• 02An unverified credit needs the reviewer’s attestation before its result is complete.

The assigned reviewer records whether they agree with the loan officer’s rating, their own rating and regulatory classification, and a conclusion. A credit that was not reviewed carries the reason. Only the assigned reviewer can record the result for a credit.

• 01The officer rating and the reviewer rating sit side by side on each credit.
• 02The review shows how much of the in-scope commitment has been reviewed.

Before submitting, the lead reviewer attests that reviewer compensation is not influenced by the ratings assigned and that the reviewers do not report to the lending function. The review is then signed off through the approvals queue by someone who is not a reviewer on it and did not originate or approve a sampled credit. Once signed off, the review and its results cannot change.

• 01A review cannot be submitted until every credit is complete or has a reason it was not reviewed.
• 02Sign-off is refused to the lead reviewer, the reviewers, and the originators and approvers of sampled credits.

Exceptions are logged during fieldwork, on one credit or on the review as a whole, with a type, a severity, a corrective action, the person responsible, and a target date. An open exception past its target date shows as overdue. It is resolved by someone other than the person responsible and the credit’s originator and approvers, or promoted into the findings register as a self-identified finding.

• 01Exception types are risk rating, documentation, underwriting, approval, covenant, collateral, policy, and other.
• 02A resolved risk rating exception records which rating stands.
• 03After sign-off, the corrective action, the person responsible, and the target date stay editable.

A signed-off review produces a sealed report from its Report button, as a PDF or a Word document. The internal report lists every credit reviewed with its reviewer and review date, the officer’s rating against the reviewer’s, the exceptions with their corrective actions, and the independence attestations. The board edition carries aggregates only, with no loan numbers and no names.

• 01The board pack also carries a credit risk review section with the reviews signed off in the period.
• 02Open exceptions past their target date are called out in both editions.