Straight Through Processing (STP)
The CorrRisk system is an online browser-based tool that contains real-time credit information on utilization of cross-border and commercial limits for trade-related exposures for FIs.
The primary use of CorrRisk is as a transactional credit approval tool. On a yearly basis more than 30,000 trade transactions are processed through the system. Before implementing the latest release, all transactions required a manual approval from Risk to ensure the requested transactions adhered to all applicable policies. The objective of this initiative was to significantly reduce the number of manual approvals for transactions within existing credit limits.
The project started officially in January 2007 and involved a global range of departments in the project and implementation phase.
The following benefits have been obtained from automation of bookings within limits:
- Significant improvement in turnaround time by reducing the transactions subject to manual approval. Around 70% of all transactions submitted through CorrRisk are now approved automatically, which enables the Trade business to confirm the underlying deals much quicker to their client base.
- Improvement of efficiency in the workflow process, in particular in case of volume increase.
- Empowered the Trade Business to self-manage non-credit related risks in our trade product offering.
- Freed up TBRM resources to better support and advise the Trade business on product structures and complex deals.
