Credit exposure setup

Financial institutions often calculate exposure differently from one another. Q2 Origination enables financial institutions to configure the elements of their exposure calculations as per their business requirements. For example, some financial institutions use certificates of deposit to offset credit exposure, and others take payoffs into account when calculating proposed exposure. Likewise, Q2 Origination enables you to construct (configure) your direct exposure and indirect proposed exposure calculations using data available in Q2 Origination. 

Credit Exposure can be of the following types: 

• Direct Exposure - Where the entity is the primary borrower.

• Indirect Exposure - Where the entity is associated in some capacity with the loan or lease. For example, as a co-borrower or guarantor. 

• Proposed (Direct or Indirect) Exposure - The exposure value due to the loans currently in origination.