Internal Credit Review
Our agricultural review team has an abundance of relevant experience, including regulatory and lending knowledge specific to the Farm Credit System. Our primary objectives in performing Internal Credit Review (ICR) include evaluating loan classification in accordance with the Uniform Classification System, assignment of risk ratings and loss given default, compliance with FCA regulations and Association policies and procedures, and credit administration performance. Our reviews follow regulatory expectations and employ a risk-based approach in the performance of the review. In addition, our approach to ICR goes beyond risk rating validation and takes into consideration all areas of the lending process and will include an assessment of underwriting, portfolio management, and problem loan management.
Our approach to ICR follows regulatory expectations and includes five distinct phases:
Planning / Engagement Letter
Scope / Sample Selection
File Review
Closing Meeting with Management
Final Report
Each phase of the credit review is critical to the successful and timely completion of the engagement and provides insurances that all deliverables have been met. Communication is a key component throughout the engagement and will be emphasized by both the engagement manager and consultants.
At the conclusion of our review, we will provide management a narrative report with a summary of our key findings, including trends or observations identified during the review in the areas of credit underwriting, portfolio management, risk rating accuracy and problem loan management. We will also provide best practice recommendations to enhance your process when appropriate.
Our narrative report and exit meeting discussion will be beneficial to both management and the Audit Committee in assessing strengths and weaknesses.