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Insurance on Loans

🎯 Project Aim
Insurance on Loans are policies that are typically taken out by Financial Institutions, to protect the exposure they have to their Primary Loans businesses. The exposure to the underlying loans provided to a counterparty generate an exposure value which then represents the maximum exposure at risk for a counterparty (assuming 100% Loss Given Default). By taking out an insurance policy, the Financial Institution can buy protection against the expected losses if the counterparty that has receved the loan, defaults. The purpose of the project, is to ensure that the Insurance Policy details flow into the Risk Systems and Processes, to ensure that the protection is incorporated into the net calculation of the exposure for the counterparty.
👥 Stakeholders
Credit Risk, Global Markets, Legal
❗Why It’s Important
Currently, the counterparty that has received the loan is calculating a gross exposure, that reflects the pure exposure profile, with no hedges applied. The result is that there is a high capital requirement for the counterparty. By incorporating the Insurance Policy offset into the calculation, the net exposure will reduce, as will the Capital requirements.
✅ Benefits
Reduction in the Primary Loans exposure with Counterparties that have taken loans with us. Subsequent reduction in Capital requirements.
🛠️ Tools Used
Python | SQL | Excel | Confluence | JIRA
🧩 My Role
Lead Business Analyst:
  • Collaborate with Global Markets to ensure that the appropriate identification and value attributes are populated and delivered in the source system feeds
  • Created the Python process to extract, enrich, transform and aggregate the data, as part of the Proof of Concept that was validated by stakeholders
  • Wrote the Business Requirements documentation for the end-to-end Hedge Framework process in Confluence, that were then converted to Functional Specifications in JIRA
  • Perform QA checks on each development step, to check that delivery passes the defined Acceptance Criteria
  • Presentation of delivered output, with explanations, to Credit Risk, and GM, for approvals, ahead of release
  • Documentation of the process for Production Support to inherit the process for ongoing BAU