3.1.1.2 Exposure Maintenance

This topic provides systematic instructions about Exposure Maintenance.

This screen allows user to create hierarchies for your custom exposures under a specific exposure type code. For each custom exposure setup, you need to define the exposure type and the associated codes. The exposure codes defined here will later be used to set exposure limits, link them at the entity level, and perform exposure tracking.

Note:

  • This maintenance is not required if you choose to use the factory-shipped GICS classification system.
  • Creating exposure hierarchies is optional; you can create a single-level exposure that is not part of any hierarchy.
  • You can create peer-level exposures, with multiple child exposures mapped to the same parent.
  1. On Home screen ,select Limits and Collaterals. Under Limits and Collaterals, select Exposures.
  2. Under Exposures, select Exposure Maintenance.
    The Exposure Maintenance screen displays.

    Figure 3-4 Exposure Maintenance


    Description of Figure 3-4 follows
    Description of "Figure 3-4 Exposure Maintenance"

    For more information on fields, refer to the field description table below.

    Table 3-4 Expsoure Maintenance

    Field Description
    Exposure Type Code Click Search icon and select the desired Exposure type code. The drop-down list displays the exposure type codes maintained in the 'Exposure Type Code Maintenance' screen.
    Parent Exposure Type For hierarchical exposure setups, define the parent exposure type for the current exposure type and codes. All active exposure maintenance records belonging to the same exposure type code are available for selection. After selecting the parent exposure type, its associated exposure codes are available for selection in the 'Parent Exposure Code' field within the multi-entry block. This step is optional if there is no associated hierarchy.
    Exposure Type Specify the type of exposure in Exposure Type field. For example, exposure types include Sector, Zone, Region, Branch, or Department, or any other.
    Exposure Type Description Provide a description to help you easily identify the exposure type.
    Exposure Code Define the exposure code you want to set up. You can add multiple exposure codes for each exposure type.
    Exposure Description Provide a description to help you easily identify the exposure code.
    Parent Exposure Code When creating an exposure hierarchy, map the parent exposure codes to child exposures. Based on the selected parent exposure type, the 'Parent Exposure Code' field will list all linked exposure codes, allowing you to create the desired hierarchy.

    The below examples shows a sample exposure setup in an hierarchy.

    Creating top most parent exposures (Level 1)

    Table 3-5 Exposure Level 1

    Exposure hierarchy Level Exposure Type Code Exposure Type Parent Exposure Type Exposure Code
    1 BANKINTERNAL SECTOR - MINING
    AGRICULTURE
    TRANSPORT
    HEALTH
    Creating child exposures under the parent (Level 2)

    Table 3-6 Exposure Level 2

    Exposure hierarchy Level Exposure Type Code Exposure Type Parent Exposure Type Exposure Code Parent Exposure Code
    2 BANKINTERNAL INDUSTRY SECTOR METALS MINING
    CROPS AGRICULTURE
    AIRLINES TRANSPORT
    HOSPITALS HEALTH

    Note:

    Users can maintain same exposure type for different exposure type code combination – refer to example below.

    Table 3-7 Example

    Exposure hierarchy SET 1 - EXISTING Exposure hierarchy SET 2 - POSSIBLE EVEN IF SET 1 IS CREATED
    Exposure Type Code Exposure Type Exposure Type Code Exposure Type
    BANKINTERNAL SECTOR NAICS SECTOR
    BANKINTERNAL INDUSTRY GROUP NAICS INDUSTRY GROUP
    BANKINTERNAL INDUSTRY NAICS INDUSTRY
    BANKINTERNAL SUB-INDUSTRY NAICS SUB-INDUSTRY
  3. Click Save to save the record.
    This is the pre-maintenance required for Custom exposure hierarchies. The next step is to define the limit amount for the required hierarchical setup.

    For more information, refer to New Exposure Hierarchy section.

Parent topic: Maintaining Custom Exposures