Does it provide early warning of structural Risk, identifying Risk drift before it appears ?

Are credit criteria being relaxed via overrides ?

Are asset values consistently over optimistic?

Is there vendor or channel bias? 

Are informal practices replacing  policy ?

Does it sample Risk themes as well as deals e.g. New products, rapid growth channels, policy exceptions, asset classes under stress ?

In Asset Finance inconsistency is a hidden loss driver.

Does the audit function provide feedback into Underwriting and policy design ?

What deals are approved within policy but are under performing ?

What deals have been declined by policy that would have been profitable ?

What structures consistently worsen the LGD ?

Can it distinguish necessary controls from unintended friction ?

Can your end user Audit and Inspection function increase your Credit appetite as well as validate your security ?
Is it Risk focused or exposure focused ? Does it assess the Hirer’s systems, management, customer base, financials, fleet composition, utilisation, equipment condition, maintenance and control. For larger customers is it linked to covenants and arrears triggers ?


Can it identify risk trends before losses emerge ?

Does it protect the Balance Sheet whilst enabling growth ?

Can it provide confidence in how Risk is being taken, not just state that rules are being followed ?

How often does it lead to changes in Credit policy, scorecards or delegated authorities ?

Does it help us take better Risk, not less Risk ?