Case Study: Top 25 U.S. financial institution (≈$100B assets) achieves enhanced credit risk management with Protiviti

Protiviti assesses effectiveness and adequacy of bank's credit risk infrastructure

U.S. Financial Institution, a top-25 U.S. bank with nearly $100 billion in assets, faced an economic downturn, a deteriorating loan portfolio and rising loss provisions after a new chief credit officer was hired. The bank engaged Protiviti to evaluate the soundness and effectiveness of its credit risk infrastructure and governance and to provide an external perspective ahead of Basel II implementation.

Protiviti reviewed policies, committee charters and reporting, analyzed credit risk models and ALLL methodologies, and interviewed more than 50 employees and board members. Protiviti delivered unbiased, industry-informed observations and tailored recommendations—including enhanced portfolio strategy monitoring, credit capital optimization, forward-looking reporting, simplification of the commercial ALLL process and greater use of external data—which the CCO and audit committee accepted and the bank immediately began to implement.