毕博上海银行咨询Final Deliverables LoanRvw112699.docVIP

HANVIT BANK RISK REVIEW PROCESS 11/16/99 Prepared by KPMG, LLP This Document is Proprietary and Confidential to Hanvit Bank and KPMG, LLP. Unauthorized duplication is prohibited. TABLE OF CONTENTS THE HANVIT BANK RISK REVIEW FUNCTION 4 Overview 4 Objectives of Hanvit Bank Risk Review 5 SUMMARY OF ELEMENTS OF THE RISK REVIEW FUNCTION 6 Goals of Hanvit Bank Risk Review 6 Risk Review Personnel 7 Qualifications 7 Independence 7 Characteristics of Risk Review 7 Frequency of Risk Reviews 7 Scope of Risk Reviews 8 Depth of Reviews 8 Review of Findings and Follow-Up 9 Workpaper and Report Distribution 9 Risk Review in Anticipation of External Examinations 9 Information Systems Support 9 Risk Review Distinguished from Credit Review 10 Sampling Methods For Risk Review 10 Risk Review as a Pipeline of Loans for Workout or Problem Loan Departments 11 DEPARTMENT COMPOSITION 13 Organization Reporting Structure 13 Interface with Board Of Directors 13 Descriptions of Proposed Positions - Functions, Duties, Responsibilities 13 EXAMINATIONS BY THE HANVIT BANK RISK REVIEW FUNCTION 16 Risk Review Process 16 Regular Risk Reviews 17 Objective of Regular Risk Reviews 17 Loans Subject to Regular Risk Review 17 Scheduling of Regular Risk Reviews 18 Tasks Performed in Risk Reviews 18 Documents used in Regular Risk Review 20 Examination of Credit Files 21 Loan Administration Processes Subject to Risk Review 21 Other Risk Reviews 23 Portfolio Risk Reviews 23 Special Situation Risk Reviews 24 Review of Underlimit Loans 24 Review of Third Party Loans or “Dealer Paper” 25 Review of Other Loans 25 Documentation Examinations 27 FINDINGS, REPORTS, REVIEW AND APPEAL PROCESS 28 Reporting 29 INTERACTION WITH OTHER DEPARTMENTS OF HANVIT BANK 31 Interaction of Risk Review with the Asset Management Unit 31 Interaction of Risk Review with Credit Review 31 Interaction of Risk Review with the Audit Department 31 APPENDICES 33 Appendix 1 - Importance Of Independent Risk Review Risk Management Functions 33