Designed the criteria and automated system that took Credit Limit Adjustment (CLA) from an unchecked monthly process to a governed daily one.

Problem

  • Before this project, the business team ran Credit Limit Adjustment (CLA) every month on its own initiative, without any review or sign-off from the Credit Risk function
  • There was no formal, agreed-upon criteria defining which accounts should have their credit limit adjusted, or by how much, relative to the company's risk appetite
  • This gap meant limit decisions could drift from the bank's actual risk tolerance without Credit Risk having visibility into it before the fact
  • Approach

  • Partnered directly with the Head of Credit Risk and the Board of Directors to define a clear, documented set of criteria for CLA that reflected the company's risk appetite
  • Translated those criteria into a rule-based system built on SQL and a scheduler, so every account list could be automatically checked against the agreed rules
  • Designed the system so accounts meeting the criteria are processed for CLA automatically, removing the need to wait for a manual monthly review cycle
  • Tools

    SQL · Scheduler

    Result

  • CLA moved from an unchecked, ad-hoc monthly process to a governed, rule-based process that runs daily
  • Every limit adjustment now traces back to criteria explicitly approved by Credit Risk leadership and the Board, closing the earlier governance gap
  • The bank can now respond to changes in portfolio risk on a daily basis instead of waiting for the next monthly cycle, without loosening any of the underlying risk controls
  • Next project →Making OJK Audits Faster with Proactive RAC Monitoring