Here is a summary of what happened with the recent credit reserve issue.

Problem
On 9/19/01 credit ran their reporting for 8/31/01 and noted the credit reserve numbers appeared to be overstated by $100 million.

Reason
In a nutshell, what occurred was that Debbie, Matthew, & my group were going through portfolios and determining which ones to delete (work started in end August).
The decision was made to run the reserves off a AGG Credit instead of the old ECT portfolio (which was no longer being maintained after the creation of the new portfolios needed for the new risk policy).  I believe this is what led to the increase in the credit reserve. The question came up last Wednesday because Mark Ruane had been out of the office and with him gone, credit had not been running their daily processes (which would have caught the increase at the time of the portfolio switch over).
When the numbers came out, Debbie ran some queries and determined 188 books were missing from the AGG Credit portfolio.  This isn't surprising, as that was not a portfolio we (or anyone) maintained.
To help credit out, we added the 188 books, but the reserve numbers did not come down to expectations. After further review, we determined that it was because intermonth books were included in the AGG Credit portfolio.  
Last night we again worked with credit to put a temporary solution in place which ended up being creating yet another portfolio without the intermonth books.

I am yet to hear what the number came out to be, but hopefully the 8/31 numbers came out okay (it takes 15 hours to run).

What we are doing
1) Keith is working on documenting all 135 root portfolios as to user, maintainer, reason for use.  The end goal will be for us to get users to use the production portfolios we maintain and create new roles within risktRAC so groups who cannot use our portfolios can maintain their own.  The message below lays out our key goals.

2) Working with Debbie (see note below) about using a portfolio for the credit reserve that is actively maintained.

Best regards

Shona

 -----Original Message-----
From: 	Wilson, Shona  
Sent:	Tuesday, September 25, 2001 4:06 PM
To:	Ruane, Mark
Subject:	FW: credit reserves



 -----Original Message-----
From: 	Wilson, Shona  
Sent:	Monday, September 24, 2001 10:48 AM
To:	Brackett, Debbie R.
Cc:	Ramesh, Ganapathy; Victorio, Tom; Considine, Keith; McIntyre, Burton; Trevino, Susan; Powell, John D.; Carrington, Clara
Subject:	credit reserves

Dear Debbie,

My group did a bit of brainstorming around portfolios and I wanted to share this info.  I'd like to talk to you about these items sometime this week.

1) We are trying to minimize the portfolios that need to be separately managed.  Keith is starting to work through all of the root portfolios and determine (among other things) the current users of each portfolio and whether these users can use a production portfolio.  The next step will be to ensure that the appropriate roles are defined so that different groups can maintain their own portfolio.  We will then transition the maintenance of these portfolios to the user groups.*

2) The users of all portfolios (including the credit reserve portfolio) need to come up with a description of the data needs from their portfolio.  Risk Analytics will not be responsible for defining user requirements around any portfolio (although we will can give input as to what is currently there).

3) Based on our initial discussions, it looks like the credit reserve portfolio needs all books with the exception of intermonth and EEL.  We would like to find a way for the credit reserve to use the same processes as Infinity.  What Infinity does is pick up books from the production portfolio and then excludes certain books from Clara's list of "exceptions".

4) The reason I copied Ramesh & John on this is because we were thinking that it might be possible to have the book type indicated in risktrac so that the credit reserve queries can automatically exclude these books from the query.  That way credit would not have to maintain a manual list of exceptions to their queries.  This is something we may also be able to get to work for Infinity.

Is there someone in credit we can work with to take a look at this proposed process?

Thanks

Shona

*To note, there are some other user requirements around needing to sever links between different root portfolios.