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Portfolio Risk Management

Our portfolio risk management services aim to reduce the regulatory burden placed on community banks and credit unions and help institutions proactively monitor risk and identify trouble spots in the portfolio. Our team of consultants have over 30 years of banking experience and use this industry knowledge to develop a strategic foundation to mitigate risk and enhance credit quality. Read Consultant Bios

“Sageworks is an efficient way to assemble flexible reports that allow us to evaluate pro-forma data and determine trends. Using those trends, we have been able to diversify our portfolio to identify if certain concentrations are above the baseline we’ve set. The solutions have been invaluable to management and our examiners.”

Julie Cripe, OmniBank, NA | Houston, TX


Concentration Reporting


Concentration reporting enables institutions to properly assess risk within the portfolio, especially when there is a high concentration in one industry, geography or collateral type. To mitigate this risk, a suite of concentration reporting frameworks can be custom built to provide in-depth analysis of various loan concentrations.

  • Automate processes to allow more time for analysis
  • Customized reports cover concentrations related to delinquencies, criticized assets, geographic distributions, trends and industry codes
  • Set up and schedule reports to run automatically and be emailed internally


Stress Test Board Package

Update the board using a concise and effective presentation of stress test analysis, key portfolio risks and methods management is using to mitigate risk.

  • Improve stress test results presentation for board of directors, auditors and regulators
  • Inform the Board and management of risk that may exist in the portfolio and its potential impact
  • Set risk management strategy and demonstrate the integration of stress test analysis into management of the portfolio to regulators

Advanced ALLL Analysis

With Sageworks Advisory Services, use advanced analysis to understand and quantify drivers of credit loss at the institution.

  • Measure and explain the variability of credit loss experience
  • Track underlying conditions, not just history, of loss experience
  • Build defensible qualitative adjustments and forecasts
  • Quantify the impact that internal changes have on loss experience

Scenario Building

There is significant, strategic value in the ability of an institution to compare different ALLL scenarios. With Sageworks, build allowance models for alternative assumptions or calculation methods and track them in parallel in accordance with new policies or peer best practices.

  • Build more accurate forecasts for the reserve
  • Understand potential impact to the balance sheet and income statement of the institution
  • Anticipate the impact of policy changes under consideration
  • Decrease reliance on qualitative adjustments to defend reserve levels

Data Audit

Prepare for the CECL standard with an extensive data audit that gauges accuracy, breadth and depth of data that will be required for life of loan calculations. Identify acceptable and remediation areas with a targeted, efficient approach minimizing institutional time overhead and maximizing clarity.

  • Ready the institution for the transition to CECL
  • Improve the institution’s operational reporting
  • Build the database to support advanced analytics
  • Verify accuracy of models

Policy Review

Engage with experts in underwriting, lending and portfolio risk management to review and optimize the institution’s policy based on feedback from thousands of Sageworks’ clients. Bring policies in line with best practices and enjoy proprietary peer analysis to support decisions.

  • Enhance policies for credit underwriting, risk rating and loan administration
  • Improve policies for ALLL and stress testing for portfolio management

Model Validation

Sageworks Advisory Services consultants can examine the institution’s model configuration and provide a set of recommendations for best practices and areas of concern, backed by proprietary peer information.

  • Prepare for the institution’s next exam or act on feedback given by regulators
  • Overcome the “We’ve always done it that way” standard

Allowance Forecasting

With an accurate forecast of the allowance, the institution can be better prepared. Working with Sageworks Advisory Services, forecast allowance and loss levels based on loan aging, lending targets, economic conditions and other factors.

  • Create pro forma statements
  • Leverage accurate information for the institution’s financial planning
  • Provide management with accurate projections that inform capital planning decisions
  • Increase the institution’s readiness for the CECL model

CECL Prep

Our advisory services team can help financial institutions prepare for the organizational and operational implications of CECL.

  • Centralize data for calculation and store multiple parallel calculations utilizing various methodologies
  • Develop a comprehensive data strategy plan to ensure risk management processes align with CECL guidance
  • Develop “reasonable and supportable” forecasts regarding the future performance of a credit or portfolio
  • Improve data warehouse and analyzing methodology options for pools within portfolio