Loan Security Exposure
Overview
Below is a clear, business-focused explanation of the Loan Security Exposure report, written for operational, credit, and risk management teams using Dafater.
Loan Security Exposure Report
Module: Loan Management
Report Type: Analytical (Script-based)
Reference Record: Loan Security
1. What Business Information This Report Provides
The Loan Security Exposure report shows how much loan exposure is currently backed by each security or collateral. It helps the business understand:
- Which securities are securing active loans
- The total loan amount linked to each security
- Whether a security is over-utilized or under-utilized
- Concentration risk tied to specific assets, guarantors, or security types
In simple terms, this report answers:
“How much risk is tied to each security we are holding?”
2. When and Why to Use This Report
When to Use
- During credit risk reviews
- Before approving new loans or top-ups
- While monitoring collateral concentration
- During internal audits or compliance checks
- For portfolio and exposure analysis
Why It Matters
- Ensures the business does not over-expose itself to a single asset or borrower group
- Helps validate that loan amounts are appropriately secured
- Supports safer Dafater decisions and regulatory compliance
3. Key Columns and Their Business Meaning
While column names may vary slightly, the report typically includes:
Loan Security
Identifies the collateral or security item (e.g., property, deposit, guarantee, asset).
Business Use:
Understand which assets are being used to secure loans.
Security Type
Category of the security (e.g., cash, property, movable asset, guarantee).
Business Use:
Analyze risk by security category and assess quality of collateral.
Loan Amount (Secured Amount)
Total outstanding loan value linked to the security.
Business Use:
Shows how much financial exposure depends on that security.
Security Value
The assessed or approved value of the security.
Business Use:
Used to compare loan exposure against collateral value.
Exposure Percentage / Utilization
Loan amount as a percentage of the security value.
Business Use:
Highlights over-secured or under-secured positions.
Borrower / Customer
The customer associated with the loan(s).
Business Use:
Identify exposure concentration by customer.
Loan Status
Indicates whether loans are active, closed, or under recovery.
Business Use:
Focus only on live risk or review historical exposure.
4. Available Filters and Their Business Purpose
Security Type
Focus on specific collateral categories.
Purpose:
Risk analysis by asset class.
Customer / Borrower
View exposure linked to a single customer.
Purpose:
Identify customer-level concentration risk.
Loan Status
Filter active, closed, or overdue loans.
Purpose:
Analyze only current risk or review past performance.
Date Range
Filter based on loan or security dates.
Purpose:
Track exposure changes over time.
Company / Branch (if applicable)
Limit results to a business unit or location.
Purpose:
Support branch-level risk monitoring.
5. How to Interpret the Results for Business Decisions
High exposure vs. low security value
→ Indicates potential under-collateralization and higher risk.Single security backing multiple loans
→ Signals concentration risk and dependency on one asset.Low utilization percentage
→ Opportunity to safely extend additional credit.Repeated exposure to same customer or asset type
→ May require policy review or tighter credit controls.
This report helps management decide: - Whether to approve new loans - Whether additional collateral is required - Whether risk limits are being breached
6. Common Use Cases and Scenarios
Credit Approval
Check existing exposure before approving a new loan against the same security.
Risk Management Review
Identify securities that are over-leveraged or nearing risk thresholds.
Portfolio Analysis
Understand how loan exposure is distributed across different security types.
Audit & Compliance
Demonstrate that loans are adequately secured and monitored.
Recovery Planning
Identify high-risk securities linked to overdue or stressed loans.
Summary
The Loan Security Exposure report is a critical risk and credit management tool in Dafater. It provides clear visibility into how loan exposure is tied to collateral, enabling safer Dafater, better compliance, and informed strategic decisions.
Report Information
- Module: Loan Management
- Related DocType: Loan Security
- Report Type: Script Report
- Standard: Yes