In today’s financial landscape, community financial institutions find themselves navigating through a unique set of challenges. The wave of bank failures throughout 2023 put a spotlight on the volatile side of the industry, making it critical for community institutions to remind the world of their resilience. Thriving in today’s unpredictable environment requires establishing and maintaining critical strategies for safeguarding your portfolio, including streamlined portfolio management processes and procedures to identify and mitigate risks earlier. SIMPLIFY ANNUAL LOAN REVIEW One of the primary defenses against portfolio vulnerabilities is for institutions to ensure they’re doing appropriate Annual Loan Review (ALR). Having an established procedure in place for conducting ALR enables institutions to proactively address potential issues before they escalate. When establishing a consistent procedure, it of course should be as easy as possible. Many of the cumbersome tasks associated with ALR, such as identifying and aggregating loans eligible for review, assigning them out and digging for the needed data, can be automated with the right technology. Once the ideal procedure is identified and the essential tools have been determined, institutions can also consider workflow automations that set clear deliverables and deadlines, provide notifications to The Critical Role of Portfolio Management and Loan Review Processes By Rachael Carter, SVP of Client Success, Teslar Software 17 The CommunityBanker
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