Methods and systems for managing risk management information

• US 20050080701A1
• Filed: 12/07/2004
• Published: 04/14/2005
• Est. Priority Date: 12/23/2002
• Status: Abandoned Application

• Current Assignee: GE Corporate Financial Services, Inc. (General Electric Company)
• Original Assignee: GE Corporate Financial Services, Inc. (General Electric Company)
• Inventors: Papalas, Stephen Anthony, Chomienne, Kathleen Mary, Tunney, Joseph Patrick, Ungari, James Charles, Vitti, Paul Anthony
• Application Number:
  US11/005,748
• Publication Number:
  US 20050080701A1
• Time in Patent Office: Days
• US Class Current: 705/35
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/08 Insurance
• CPC Class Codes: G06Q 40/12 Accounting

Abstract

A method for managing business information and account strategy by a business entity is provided. The method uses a computer system coupled to a database. The method includes receiving at the computer system information including historical financial data relating to at least one customer of the business entity, and entering into the computer at least one risk factor including at least one of a deal driver, a tracking source, a tracking frequency, a target metric, a trigger level, an impact of factor, and corresponding action plan wherein the risk factor indicating a risk associated with the business entity providing financing to the customer. The method further includes updating the database periodically with newly received information, and monitoring the at least one deal driver to determine whether to alter a current account strategy being applied by the business entity to the customer including updating a buy/hold/sell plan.

Claims

1. A method for managing business information and account strategy by a business entity using a computer system coupled to a database, said method comprising:

receiving at the computer system information including historical financial data relating to at least one customer of the business entity;

storing the information received at the computer system in the database;

entering into the computer at least one risk factor including at least one of a deal driver, a tracking source, a tracking frequency, a target metric, a trigger level, an impact of factor, and corresponding action plan, the risk factor indicating a risk associated with the business entity providing financing to the customer;

storing the at least one risk factor in the database;

updating the database periodically with newly received information including actual financial data for the customer to maintain the database; and

monitoring the at least one deal driver to determine whether to alter a current account strategy being applied by the business entity to the customer including updating a buy/hold/sell plan.

2. A method in accordance with claim 1 further comprising:

generating at least one financial scenario for the customer based on the received information, the at least one financial scenario including projected financial data for the customer;

storing the at least one financial scenario in the database; and

calculating a variance for the customer by comparing the projected financial data from the generated financial scenario to the actual financial data.

3. A method in accordance with claim 2 wherein generating at least one financial scenario for the customer further comprises:

providing a cash flow forecasting tool in communication with the computer system;

accessing by the forecasting tool the information stored in the database; and

projecting future financial data for the customer using the forecasting tool and the information stored in the database.

4. A method in accordance with claim 3 wherein projecting future financial data for the customer further comprises:

using the forecasting tool to project a variety of financial scenarios for the customer;

storing the financial scenarios in the database; and

determining by the business entity whether to provide the customer with financing based on the financial scenarios stored in the database.

5. A method in accordance with claim 2 wherein generating at least one financial scenario for the customer further comprises projecting an expected financial scenario for the customer.

6. A method in accordance with claim 2 wherein calculating a variance for the customer further comprises calculating a plurality of metrics showing a comparison between the projected financial data and the actual financial data for the customer over a specific period time.

7. A method in accordance with claim 2 wherein calculating a variance for the customer further comprises calculating an EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) percentage based on the projected financial data and the actual financial data for the customer over a specific period of time.

8. A method in accordance with claim 2 wherein calculating a variance for the customer further comprises:

evaluating an underwriting process used by the business entity prior to providing financing to the customer; and

determining whether to alter the underwriting process for future financings based on the calculated variance.

9. A method in accordance with claim 1 wherein receiving at the computer system information further comprises receiving at the computer system risk management (RM) information for a customer of the business entity, the RM information comprising at least one of business information, accounts payable, accounts receivable, an availability analysis, a covenant compliance, coverage ratios, financial statements, financial statement and availability projections, a capital structure, income statements, an inventory, a leverage analysis, a loan profile, collateral, guarantors, machinery and equipment, real estate, a liquidation value, amortization information, a capital raising history, an equity valuation, and other documents and information relating to the financial condition of the customer.

10. A method in accordance with claim 1 wherein entering into the computer at least one risk factor further comprises entering into the computer a deal driver and at least one of a type of deal driver, a deal driver rationale, a tracking source, a detailed driver description, a measurement frequency, a measurement start date, a measurement end date, and whether the deal driver is a seasonal driver.

11. A method in accordance with claim 1 wherein entering into the computer at least one risk factor further comprises entering into the computer at least one deal driver and a corresponding trigger level for each financing, the deal driver is assigned by the business entity during an underwriting process associated with the financing of the customer and includes a financial variable representing a level of strength of the customer'"'"'s business, the trigger level is assigned to a deal driver by the business entity during the underwriting process associated with the financing of the customer and is a threshold level such that when a trigger level is satisfied the computer automatically notifies management of the business entity.

12. A method in accordance with claim 1 wherein entering into the computer at least one risk factor further comprises:

entering into the computer at least one deal driver for each financing, wherein each deal driver is assigned by a deal team associated with the business entity during an underwriting process associated with the financing of the customer and is approved by management of the business entity; and

updating the corresponding action plan as required by the financing.

13. A method in accordance with claim 1 wherein monitoring the at least one deal driver further comprises:

monitoring by the business entity a deal driver associated with a financing provided by the business entity to the customer, the deal driver including a financial variable representing a level of strength of the customer'"'"'s business, the deal driver having a corresponding trigger level;

using the tracking source to determine a value for the deal driver;

comparing the value of the deal driver from the tracking source to the corresponding trigger level; and

automatically notifying management of the business entity if the value of the deal driver from the tracking source satisfies the corresponding trigger level.

14. A method in accordance with claim 13 wherein automatically notifying management comprises transmitting an electronic message to at least one of an account manager, a team leader, a portfolio manager, and a senior risk manager from at least one of a member of a deal team, an account manager, a team leader, a portfolio manager, and a senior risk manager.

15. A method in accordance with claim 1 wherein monitoring the at least one deal driver further comprises:

monitoring by the business entity a deal driver associated with a financing provided by the business entity to the customer, the deal driver including a financial variable representing a level of a strength of the customer'"'"'s business, the deal driver having a corresponding trigger level and action plan;

using the tracking source to determine a value for the deal driver;

comparing the value of the deal driver from the tracking source to the corresponding trigger level; and

implementing the action plan if the value of the deal driver from the tracking source satisfies the corresponding trigger level.

16. A method in accordance with claim 1 wherein monitoring the at least one deal driver further comprises:

monitoring by the business entity a deal driver associated with a financing provided by the business entity to the customer, the deal driver including a financial variable representing a level of strength of the customer'"'"'s business, the deal driver having a corresponding trigger level;

using the tracking source to determine a value for the deal driver;

comparing the value of the deal driver from the tracking source to the corresponding trigger level; and

determining by the business entity if the value of the deal driver from the tracking source satisfies the corresponding trigger level whether to alter the current account strategy including at least one of providing additional financing to the customer, selling the financing provided to the customer, and maintaining the financing provided to the customer.

17. A method in accordance with claim 1 wherein monitoring the at least one deal driver further comprises:

inputting historical data relating to deal drivers; and

monitoring trends of deal drivers over a period of time for a specific financing.

18. A method in accordance with claim 1 wherein the computer system is a server system, and wherein the method further comprises connecting the server system with a client system via a network that includes one of a wide area network, a local area network, an intranet and the Internet.

19. A method for managing business information and account strategy by a business entity using a computer system coupled to a database, said method comprising:

receiving at the computer system information including historical financial data relating to at least one customer of the business entity;

storing the information received at the computer system in the database;

generating at least one financial scenario for the customer based on the received information, the at least one financial scenario including projected financial data for the customer;

entering into the computer at least one risk factor including at least one of a deal driver, a tracking source, a tracking frequency, a target metric, a trigger level, an impact of factor, and corresponding action plan, the risk factor indicating a risk associated with the business entity providing financing to the customer, the deal driver is assigned by the business entity during an underwriting process associated with the financing of the customer and includes a financial variable representing a level of strength of the customer'"'"'s business, the trigger level is assigned to a deal driver by the business entity during the underwriting process associated with the financing of the customer and is a threshold level;

storing the at least one financial scenario and the at least one risk factor in the database;

updating the database periodically with newly received business information including actual financial data for the customer to maintain the database;

calculating a variance for the customer by comparing the projected financial data from the generated financial scenario to the actual financial data; and

monitoring the at least one deal driver to determine whether to alter a current account strategy being applied by the business entity to the customer including updating a buy/hold/sell plan.

20. A network based system for managing business information and account strategy by a business entity, said system comprising:

a client system comprising a browser;

a centralized database for storing information;

a server system configured to be coupled to the client system and the database, the server system further configured to;

receive from the client system information including historical financial data relating to at least one customer of the business entity;

store the information in the database;

prompt a user to enter using the client system at least one risk factor including at least one of a deal driver, a tracking source, a tracking frequency, a target metric, a trigger level, an impact of factor, and corresponding action plan, the risk factor indicating a risk associated with the business entity providing financing to the customer;

store the at least one risk factor in the database;

update the database periodically with newly received information including actual financial data for the customer to maintain the database; and

monitor the at least one deal driver to determine whether to alter a current account strategy being applied by the business entity to the customer including updating a buy/hold/sell plan.

21. A system in accordance with claim 20 wherein said server system is further configured to:

generate at least one financial scenario for the customer based on the received information, the at least one financial scenario including projected financial data for the customer;

store the at least one financial scenario in the database; and

calculate a variance for the customer by comparing the projected financial data from the generated financial scenario to the actual financial data.

22. A system in accordance with claim 21 further comprising a cash flow forecasting tool in communication with the server system, the cash flow forecasting tool configured to:

access the information stored in the database; and

project future financial data for the customer based on the information stored in the database.

23. A system in accordance with claim 22 wherein the cash flow forecasting tool is further configured to:

project a variety of financial scenarios for the customer; and

store the financial scenarios in the database.

24. A system in accordance with claim 23 wherein said server system is further configured to:

provide a recommendation to the business entity regarding whether to provide the customer with a financing based on the financial scenarios stored in the database.

25. A system in accordance with claim 21 wherein the at least one financial scenario for the customer includes an expected financial scenario, and wherein said server system is further configured to store the expected financial scenario in the database.

26. A system in accordance with claim 21 wherein said server system is further configured to calculate a plurality of metrics showing a comparison between the projected financial data and the actual financial data for the customer over a specific period of time.

27. A system in accordance with claim 21 wherein said server system is further configured to calculate an EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) percentage based on the projected financial data and the actual financial data for the customer over a specific period of time.

28. A system in accordance with claim 21 wherein said server system is further configured to:

evaluate an underwriting process used by the business entity prior to providing financing to the customer; and

recommend whether to alter the underwriting process for future financings based on the calculated variance.

29. A system in accordance with claim 20 wherein information stored in the database further comprises risk management (RM) information for a customer of the business entity, the RM information comprising at least one of business information, accounts payable, accounts receivable, an availability analysis, a covenant compliance, coverage ratios, financial statements, financial statement and availability projections, a capital structure, income statements, an inventory, a leverage analysis, a loan profile, collateral, guarantors, machinery and equipment, real estate, a liquidation value, amortization information, a capital raising history, an equity valuation, and other documents and information relating to the financial condition of the customer.

30. A system in accordance with claim 20 wherein said server system is further configured to prompt a user to enter into the client system a deal driver and at least one of a type of deal driver, a deal driver rationale, a tracking source, a detailed driver description, a measurement frequency, a measurement start date, a measurement end date, and whether the deal driver is a seasonal driver.

31. A system in accordance with claim 20 wherein said server system is further configured to:

prompt a user to enter into the client system at least one deal driver and a corresponding trigger level for each financing, the deal driver is assigned by the business entity during an underwriting process associated with the financing of the customer and includes a financial variable representing a level of strength of the customer'"'"'s business, the trigger level is assigned to a deal driver by the business entity during the underwriting process associated with the financing of the customer and is a threshold level; and

automatically transmit a notification to management of the business entity when a trigger level is satisfied.

32. A system in accordance with claim 20 wherein said server system is further configured to:

prompt a user to enter into the client system at least one deal driver for each financing, wherein each deal driver is assigned by a deal team associated with the business entity during an underwriting process associated with the financing of the customer and is approved by management of the business entity; and

prompt the user to update the corresponding action plan as required by the financing.

33. A system in accordance with claim 20 wherein said server system is further configured to:

monitor a deal driver associated with a financing provided by the business entity to the customer, the deal driver including a financial variable representing a level of strength of the customer'"'"'s business, the deal driver having a corresponding trigger level;

access the tracking source to determine a value for the deal driver;

compare the value of the deal driver from the tracking source to the corresponding trigger level; and

automatically notify management of the business entity if the value of the deal driver from the tracking source satisfies the corresponding trigger level.

34. A system in accordance with claim 33 wherein said server system is further configured to transmit an electronic message to at least one of an account manager, a team leader, a portfolio manager, and a senior risk manager from at least one of a member of a deal team, an account manager, a team leader, a portfolio manager, and a senior risk manager.

35. A system in accordance with claim 20 wherein said server system is further configured to:

monitor a deal driver associated with a financing provided by the business entity to the customer, the deal driver including a financial variable representing a level of a strength of the customer'"'"'s business, the deal driver having a corresponding trigger level and action plan;

access the tracking source to determine a value for the deal driver;

compare the value of the deal driver from the tracking source to the corresponding trigger level; and

display on the client system the action plan if the value of the deal driver from the tracking source satisfies the corresponding trigger level.

36. A system in accordance with claim 20 wherein said server system is further configured to:

monitor a deal driver associated with a financing provided by the business entity to the customer, the deal driver including a financial variable representing a level of strength of the customer'"'"'s business, the deal driver having a corresponding trigger level;

access the tracking source to determine a value for the deal driver;

compare the value of the deal driver from the tracking source to the corresponding trigger level; and

prompt the user, if the value of the deal driver from the tracking source satisfies the corresponding trigger level, to alter the current account strategy including at least one of providing additional financing to the customer, selling the financing provided to the customer, and maintaining the financing provided to the customer.

37. A system in accordance with claim 20 wherein said server system is further configured to:

prompt a user to input into the client system historical data relating to deal drivers; and

display on the client system trends of deal drivers over a period of time for a specific financing.

38. A system in accordance with claim 20 wherein the server system is connecting to the client system via a network that includes one of a wide area network, a local area network, an intranet and the Internet.

39. A computer program embodied on a computer readable medium for managing business information and account strategy by a business entity providing financing to a customer, said program comprising at least one code segment that receives information including historical financial data relating to at least one customer of the business entity and then:

stores the information in a database;

prompts a user to enter at least one risk factor including at least one of a deal driver, a tracking source, a tracking frequency, a target metric, a trigger level, an impact of factor, and corresponding action plan, the risk factor indicating a risk associated with the business entity providing financing to the customer;

stores the at least one risk factor in the database;

updates the database periodically with newly received information including actual financial data for the customer to maintain the database;

monitors the at least one deal driver; and

recommends whether to alter a current account strategy being applied by the business entity to the customer including updating a buy/hold/sell plan.

40. A computer program in accordance with claim 39 further comprising at least one code segment that:

generates at least one financial scenario for the customer based on the received information, the at least one financial scenario including projected financial data for the customer;

stores the at least one financial scenario in the database; and

calculates a variance for the customer by comparing the projected financial data from the generated financial scenario to the actual financial data.

41. A computer program in accordance with claim 40 further comprising at least one code segment that:

transmits information from the database to a cash flow forecasting tool; and

receives projected future financial data for the customer from the cash flow forecasting tool.

42. A computer program in accordance with claim 41 further comprising at least one code segment that:

receives a variety of financial scenarios for the customer from the cash flow forecasting tool; and

stores the financial scenarios in the database.

43. A computer program in accordance with claim 42 further comprising at least one code segment that:

provides a recommendation to the business entity regarding whether to provide the customer with a financing based on the financial scenarios stored in the database.

44. A computer program in accordance with claim 40 further comprising at least one code segment that stores an expected financial scenario in the database.

45. A computer program in accordance with claim 40 further comprising at least one code segment that calculates a plurality of metrics showing a comparison between the projected financial data and the actual financial data for the customer over a specific period of time.

46. A computer program in accordance with claim 40 further comprising at least one code segment that calculates an EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) percentage based on the projected financial data and the actual financial data for the customer over a specific period of time.

47. A computer program in accordance with claim 40 further comprising at least one code segment that:

evaluates an underwriting process used by the business entity prior to providing financing to the customer; and

recommends whether to alter the underwriting process for future financings based on the calculated variance.

48. A computer program in accordance with claim 39 further comprising at least one code segment that stores risk management (RM) information of the customer in the database including at least one of business information, accounts payable, accounts receivable, an availability analysis, a covenant compliance, coverage ratios, financial statements, financial statement and availability projections, a capital structure, income statements, an inventory, a leverage analysis, a loan profile, collateral, guarantors, machinery and equipment, real estate, a liquidation value, amortization information, a capital raising history, an equity valuation, and other documents and information relating to the financial condition of the customer.

49. A computer program in accordance with claim 39 further comprising at least one code segment that prompts a user to enter a deal driver and at least one of a type of deal driver, a deal driver rationale, a tracking source, a detailed driver description, a measurement frequency, a measurement start date, a measurement end date, and whether the deal driver is a seasonal driver.

50. A computer program in accordance with claim 39 further comprising at least one code segment that:

prompts a user to enter at least one deal driver and a corresponding trigger level for each financing, the deal driver is assigned by the business entity during an underwriting process associated with the financing of the customer and includes a financial variable representing a level of strength of the customer'"'"'s business, the trigger level is assigned to a deal driver by the business entity during the underwriting process associated with the financing of the customer and is a threshold level; and

automatically transmits a notification using a computer system to management of the business entity when a trigger level is satisfied.

51. A computer program in accordance with claim 39 further comprising at least one code segment that:

monitors a deal driver associated with a financing provided by the business entity to the customer, the deal driver including a financial variable representing a level of strength of the customer'"'"'s business, the deal driver having a corresponding trigger level;

accesses the tracking source to determine a value for the deal driver;

compares the value of the deal driver from the tracking source to the corresponding trigger level; and

automatically notifies management of the business entity if the value of the deal driver from the tracking source satisfies the corresponding trigger level.

52. A computer program in accordance with claim 39 further comprising at least one code segment that:

monitors a deal driver associated with a financing provided by the business entity to the customer, the deal driver including a financial variable representing a level of a strength of the customer'"'"'s business, the deal driver having a corresponding trigger level and action plan;

accesses the tracking source to determine a value for the deal driver;

compares the value of the deal driver from the tracking source to the corresponding trigger level; and

displays on a client system the action plan if the value of the deal driver from the tracking source satisfies the corresponding trigger level.

53. A computer program in accordance with claim 39 further comprising at least one code segment that:

monitors a deal driver associated with a financing provided by the business entity to the customer, the deal driver including a financial variable representing a level of strength of the customer'"'"'s business, the deal driver having a corresponding trigger level;

accesses the tracking source to determine a value for the deal driver;

compares the value of the deal driver from the tracking source to the corresponding trigger level; and

prompts the user, if the value of the deal driver from the tracking source satisfies the corresponding trigger level, to alter the current account strategy including at least one of providing additional financing to the customer, selling the financing provided to the customer, and maintaining the financing provided to the customer.

54. A computer program in accordance with claim 39 further comprising at least one code segment that:

prompts a user to input into a client system historical data relating to deal drivers; and

displays on the client system trends of deal drivers over a period of time for a specific financing.