Our Process:
At RKM Credit Advisory, our process is designed to mirror how bank examiners, chief credit officers, and risk committees actually evaluate credit risk — not how marketing firms or generic consultants do.

Our methodology is built to deliver:
1. Early risk detection
2. Board-defensible conclusions
3. Regulator-aligned documentation
4. Actionable remediation guidance
5. Every engagement follows a disciplined, four-phase framework.

Phase I — Portfolio Risk Mapping:
Before we review individual loans, we first understand the risk profile of the bank as a whole.

We analyze:
Portfolio concentrations by industry, geography, and product
Vintage risk by origination period
Exposure to interest-rate sensitivity
Sponsor and guarantor concentration
CRE and construction exposure
Policy vs. practice divergence

This allows us to identify where hidden risk is most likely to exist and where loan-level sampling should be focused and mirrors how regulators scope examinations.

Phase II — Credit File & Underwriting Review:
We then conduct a structured review of selected loan files based on portfolio risk weighting.

Each file is evaluated across four dimensions:

Cash-Flow Reality:
Global debt service coverage
Sponsor cash-flow dependency
Stress-tested performance under higher rates or lower NOI

Collateral & Structure:
True liquidation value
Loan-to-value accuracy
Capital stack position
Covenant protection

Sponsor & Guarantor Strength:
Net worth and liquidity
Track record
Portfolio leverage
Cross-collateral exposure

Risk Rating Accuracy:
Internal risk grades reflect actual probability of default
Watch-list and criticized assets are properly classified
Emerging risk is being identified early

This moves beyond policy compliance into real risk exposure.

Phase III — Portfolio & Trend Diagnostics:

After loan-level analysis, we aggregate results into a portfolio-wide risk view.

We identify:
Policy drift
Underwriting pattern weaknesses
Risk-rating inflation
Concentration creep
Vintage deterioration
Early warning indicators

This provides management and boards with a forward-looking view of credit quality — not just historical performance.

Phase IV — Reporting & Risk Remediation:

We deliver:
Executive-level risk summaries
Detailed loan-level findings
Regulatory-aligned language
Remediation recommendations

Our reports are structured so they can be:
Provided to boards
Shared with examiners
Used in audit committee meetings
Used for capital and reserve planning

We don’t just identify problems — we provide clear, practical paths to correction.

What Makes Our Process Different:

Most loan review firms focus on:
File completeness
Documentation checks
Policy adherence

RKM Credit Advisory focuses on:
Cash-flow truth
Downside protection
Sponsor resilience
Portfolio correlation
Loss-given-default reality

Our process is designed to answer the only question that matters:
“Where will this bank lose money — and how soon?”

Designed for Regulators, Boards, and Risk Committees:

Our process is aligned with:
OCC and FDIC supervisory frameworks
Board-level risk governance
Audit committee expectations
Credit risk management best practices

This ensures every engagement strengthens a bank’s:
Regulatory standing
Risk posture
Capital protection
Long-term stability