Treasury and finance · Contingent Liabilities (rm.TradeFinance)
Letter of credit and bank guarantee management
Request and track letters of credit, bank guarantees, surety bonds and comfort letters from request to expiry.
The problem
Letters of credit, guarantees and bonds are requested by email and tracked in spreadsheets across banks, sureties and countries. Treasury can’t see total outstanding exposure by bank or currency, renewals and fees slip by, and instruments that should be released stay open and tie up credit lines.
- Premiums32%Not directly affected.
- Retained losses62%Not directly affected.
- Cost to manage risk6%In this example, collateral costs such as letter of credit and bond fees run about $78,000 a year, plus about 70 staff hours managing the instruments.
Typical split from the Risk Diagnostic’s example: a public agency with a $1.2 billion budget. Take the diagnostic and this chart shows your own numbers.
What it does
Request workflow
Business units request instruments with the approvals you require.
Instrument register
Every letter of credit, guarantee and bond in one place.
Expiry and fee alerts
Advance notice of expiries, renewals and fees.
Exposure reporting
Outstanding amounts by bank, surety, beneficiary and currency.
Global operations
Manage instruments across operations and jurisdictions from one dashboard.
Bank integration
End-to-end integration with your global relationship banks and regional branches.
82 currencies
Instruments in any of 82 currencies, converted with managed exchange rates.
Full record and reporting
Every action and message between your team and outside parties is logged, and ad-hoc reports give real-time contingent liability, process and performance data.
How it works
- 1Instrument requested
- 2Approved and issued
- 3Tracked and amended
- 4Released or renewed
What to expect
Who uses it
Treasury and finance teams that manage letters of credit, guarantees and bonds across banks and sureties.
Exigis’s work for Tyco won Treasury & Risk’s Alexander Hamilton Award in Technology.
Questions
Does it handle several banks, sureties and currencies?
Yes. Instruments are tracked across banks, sureties and jurisdictions, in any of 82 currencies with managed exchange rates.
Can business units request instruments?
Yes. Requests go through the approvals you set before they reach the bank or surety.
Related
Bank Account Tracking
Manage global bank accounts, signers and authorities with multi-currency support and approval workflows.
Learn moreThe RiskWorks platform
The platform every application runs on: workflows, rules, hierarchies, documents and audit trail.
Learn moreWhat does tracking contingent liabilities cost you?
The free Risk Diagnostic measures the effort behind your letters of credit, bonds and guarantees, compared with your industry. Then review it with an Exigis analyst at no cost.