Excess Reporting

What are the different excess classifications (select all that apply)?

• True and Technical

• Real and Technical

• Technical and Non-Technical

• Real and Unreal

• True and Real

Answer explanation

The only two correct options are Technical and Non-Technical Excess

If there is a non-technical excess under a customer's account, it is the frontline's responsibility to arrange clearance.

• True

• False

Answer explanation

True. The frontline will either need to contact the customer to deposit funds into the account or waive fees/interest (if the excess is caused by fees and interest).

I need to report the reason/cause of the excess in the report:

• Only for Technical Excesses

• No, the excess classification is sufficient

• I will include a screenshot, the frontline can interpret.

• Yes

Answer explanation

The reason for the excess is one of the required information in the excess report.

Excesses due to the FX Rate Mismatches are classified as

• Technical

• Mark to Market

• Non-Technical

Answer explanation

The BRCF/Spot Rate mismatch between Orion and Razor are technical in nature. In the base currency, there is sufficient limit vs the exposure.

What is required when there is an excess for an account within a limit arrangement?

• Report it but there is no maintenance required as long as there is sufficient limit within the arrangement to cover the excess.

• Report it and reallocate the limits to cover the excess. Send to QC for checking.

• Report it then reallocate limits to cover the excess. No checking required by the QC

• Seek frontline approval prior to reallocation of limit within the limit arrangement

Answer explanation

Reallocating limits within an arrangement does not required a CAD hence no frontline approval is required. It is also classified as straight through processing so no QC checking is required.

Action Log excess items that do not appear in the Razor Excess Report do NOT need to be included in the email to the frontline.

• True

• False

Answer explanation

All excesses that appear in the Action Log need to be verified and included in the email to FL even if they do not appear in the Razor Excess Report. The linkage between Orion and Razor will then need to be fixed.

When there is an exposure for a loan product that does not have a limit, what will it appear as in the Razor Excess Report

• Time-banding

• Unapproved Product

• Forever

Answer explanation

This will be classified as a Non-Technical excess.  Advise the frontline to contact the product partner that booked the exposure.