Risk Management Setup

Created by Erik Akerlund, Modified on Mon, 29 May 2023 at 11:05 AM by Maria Appelquist

Middle office/ Risk Management / Configure

The companies risk end key figures that needs to be monitored should be set up in the Risk Management.


In this section, the user set up and configure their limits. The user must have the role "Update limits" to be able to do this. A log is created for changes in the limit configuration. 

Add a new limit by clicking the plus sign

1. Select  Amount or Refinance limit.

Amount Limit 

All amount limits for example Counterparty risk, Placement limit, Limits per Legal entity should be entered here. 

Add relevant report columns in the system report Risk management report column limits

Refinance Limit 

Define guidelines in % of how much of your loan portfolio could mature for each time line. 

Chose the column  Capital change to see how much that will mature of the outstanding deals (according to selected deal types) as of today. The amounts will be consolidated to selected currency with the latest FX rate table's mid rates. 

For example  

today – 1Y  max 30 % of the loan portfolio can expire 

1Y – 2Y max 30 % of the loan portfolio can expire 

2Y - 3Y max 30 % of the loan portfolio can expire 

2. Type a name of the limit, and write a description.

3. If you have created an Amount limit Grouping Tag needs to be filled in. Choose on which Tag the limit should be followed up on for example Counterpart. You can the select different counterparts in the detailed section

For a Refinance limit it will be set to N/A

4. Tag Source- if the limit is on a company tag you should specify if it it is the legal entity or the counterparts company tag that should be looked on. 

5. Currency stipulates which currency the limit is in and all the amounts will also be consolidated to this currency. For Bank accounts you do not need to set up currency if the limit should be in the accounts own currency.

6. Warning level is set to 95% by default but can be changed.


Calculation Column the user can choose which column (value) the limit should be measured against. A special column called Default limit is defined as:


• FX (FX Transaction): Market Value
• Loan or Deposit (Interest Transaction): Closing balance
• Bank account (bank account transaction): Closing balance
• Credit facility: Facility used
• IRS or CCIRS (Interest Transaction): Market value

You can choose from already existing columns or create an own calculated column. there are soma columns that are included to include mor columns to chose from it needs to be set up in the report Risk management Report

In selection, you decide which selection criteria should be applied for the Limit, for example certain deal types 

If a Amount limit are created, enter the different limits on each Tag in the Limit Details section.

If Refinance limit are created, enter the time slots and percentage in the Limit Details section.

Was this article helpful?

That’s Great!

Thank you for your feedback

Sorry! We couldn't be helpful

Thank you for your feedback

Let us know how can we improve this article!

Select atleast one of the reasons

Feedback sent

We appreciate your effort and will try to fix the article