Issue
During a routine examination for an international bank, the CBIZ Credit Risk Advisory Services team noticed some unusual patterns in the borrower’s receivables. It turned out that invoices were being pre-billed and masked in the system, resulting in collateral being overstated by millions and putting the bank at serious financial risk.
Solution
Our experienced professionals performed an in-depth analysis of the invoice records, cross-checking them against aging schedules and the general ledger. They found that $34 million in collateral had been overstated due to early billing practices. They also spotted undisclosed related entities moving money overseas by examining vendor payments. After CBIZ reported these findings, the bank quickly stepped in and worked with the borrower to address the issues. This thorough, hands-on approach gave the bank clarity and the information needed to protect itself.
Outcome
Thanks to the CBIZ credit risk team’s timely discovery, the bank was able to intervene before the problem escalated. It sold off the troubled subsidiary, recovered its funds, and avoided what could have been a $100 million loss. The outcome serves as a real reminder of how vital careful examination and expertise are in managing credit risk.
| Company Information | |
|---|---|
| Industry | Financial Services |
| Entity Type | Bank |
| Ownership Structure | Public Company |
| Geographic Footprint | International |
| Number of Employees | 54,000 |
| Annual Revenue | #20 Billion |
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