2.2 Scope of EWS Process
Effective from Jan 06 2020 - Jun 30 2020
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The EWS process is organized in three stages: identification, action, and monitoring. Each of these stages is described in detail in the following sections. The timeline for implementing actions included in each of these stages is explained in section 2.3.
| # | Area | Description | |
| 1 | Signal Identification | • | Responsibility for establishing parameters for signals and monitoring resides in a separate unit or function within risk management, middle or back office. |
| • | Upon identification of a signal, notification is sent to the respective relationship manager and his team leader that action is required to close the EWS breach. | ||
| 2 | Action | • | Relationship Manager contacts the borrower and identifies the source and magnitude of a potential payment difficulty. |
| • | After analysis and in consultation with risk management, a corrective action plan is put in place. | ||
| • | A loan is added to the watch list prepared on the basis of EWS for the purposes of further monitoring. | ||
| 3 | Monitoring | • | Risk management approval required to remove the loan from watch list prepared on the basis of EWS. |
| • | A loan can remain on watch list for a time period specified by the bank. After that period, loan must be either returned to originating unit or transferred to Workout Unit. | ||
| • | While on the watch list, a loan should be classified with a lower risk rating compared to the one prior to moving to the watch list. | ||