credit-collateral-risk-mgmt

Full Lifecycle Collateral Risk Assessment and Management

For collateral (mortgaged/pledged assets) involved in credit business, perform risk assessment and management across the five stages of access, assessment, registration, monitoring, and disposal.

Target Role

• Role:Credit approval officer, risk manager, corporate account manager, post-loan management position
• Use Scenarios:Collateral compliance review before credit approval, post-loan collateral value monitoring, disposal assessment after risk alert triggers
• Output Purpose:Generate a structured collateral risk report as a reference basis for credit approval decisions and post-loan risk classification
• Decision Level:High-risk decisions (collateral adequacy directly affects credit limits and risk exposure)
• Execution Frequency:On demand (pre-loan review/post-loan periodic monitoring/risk event trigger)

Data Sources

Required Data

Data Item	Source	Acquisition Method	Sensitivity Level
Collateral list and ownership certificates	Credit system collateral ledger, real estate registration system	System API query/manual entry	Internal
Assessment report	Appraisal institution database, assessment report query interface	Interface call/file upload	Internal
Registration information	Real estate registration center, China Credit Reference Center, market supervision department	External system query	Public
Market price data	External market data sources, internal valuation models	API call/manual entry	Internal
Insurance information	Insurance company system, credit system	Interface query	Internal

Degradation Strategy

• If the assessment report query interface is unavailable: use the most recently manually uploaded assessment report, but the report must be marked "Data source: historical report, not verified in real time"
• If the market price data source is unavailable: industry average values must not be used as a substitute, and the report must note "Market price data is temporarily unavailable; collateral value may be biased"
• If the registration system is unavailable: require manually provided scanned copies of registration certificate documents; the registration verification step must not be skipped
• If insurance information is unavailable: mark "Insurance status unknown, must be manually verified and supplemented"; for collateral subject to mandatory insurance (real estate/equipment/inventory), handle according to the C6 veto condition

Execution Workflow

📋 Interaction mode: Mode B - Step-Gated Workflow Regulatory basis: "Guidelines for Collateral Management of Commercial Banks" (Yin Jian Fa [2017] No. 16), the Security Interest Part of the Civil Code, "Interim Regulations on Real Estate Registration"

Step 0: Data Confirmation and Verification (read before write)

Execution Instructions:Before starting the collateral risk assessment, the completeness and validity of the input data must be confirmed.

Execution Steps:

1. List the input collateral inventory and confirm that it includes key fields such as collateral name, category, owner, and appraised value
2. Confirm the business scenario (pre-loan assessment/approval review/post-loan monitoring/risk disposal)
3. Run scripts/validate_collateral.py to validate the collateral data format and required fields
4. Only after validation passes may you proceed to Step 1; if validation fails, return the list of missing data

⚠️ Do not skip the required-field check; you must confirm that the collateral inventory, ownership proof, and appraisal report are complete

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Step 1: Collateral Eligibility Compliance Screening

Execution Instructions:Verify whether the collateral is within the acceptable range, and exclude collateral prohibited by laws and regulations or with unclear ownership.

Execution Steps:

1. Consult references/collateral-acceptance-criteria.md, and check item by item whether the collateral is within the latest version of the Head Office's "List of Acceptable Collateral"
2. For real estate collateral, check whether the property age, region, and planned use match the list requirements
3. For accounts receivable, confirm the core enterprise's rating, payment period, and whether there are commercial disputes
4. Check whether any circumstances in the list of unacceptable collateral exist

Gating Conditions:

• ✅ All collateral is within the acceptable list → Proceed to Step 2
• ❌ The collateral belongs to property explicitly prohibited by laws and regulations from being mortgaged or pledged (C3 triggered) → Stop immediately, output a "prohibited from eligibility" conclusion, and do not ignore it because "the customer's qualifications are good"
• ⚠️ There is a defect in the collateral ownership (e.g., the lease term exceeds the credit term) → Mark the risk point, proceed to Step 2, but highlight it in the final report

⚠️ Do not skip the ownership clarity check; you must confirm item by item that the collateral is not sealed, not frozen, and has no ownership dispute

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Step 2: Review of the Reasonableness of the Value Assessment

Execution Instructions:Review the validity of the appraisal report, the applicability of the appraisal method, and the reasonableness of the appraised value.

Execution Steps:

1. Consult references/valuation-standards.md, and confirm the qualifications of the appraisal institution (it must be on the Head Office's approved list)
2. Check whether the appraisal base date is ≤6 months from the credit application date; if overdue, re-appraisal is required
3. Confirm the applicability of the appraisal method (market approach preferred for real estate, cost approach preferred for equipment, income approach may be used for income-producing assets)
4. Cross-validate the deviation between the appraised value and recent transaction prices of similar assets (≤20% is reasonable; >20% requires a second appraisal)
5. Check the "Special Matters Statement" and "Restrictions on Use" in the appraisal report

Gating Conditions:

• ✅ The appraisal report is valid and the value is reasonable → Proceed to Step 3
• ❌ The appraised value is inflated and deviates from the market price of similar assets by more than 30% (C4 triggered) → Red warning, requiring re-appraisal or confirmation by a second appraisal; it may not be used as a basis for credit before confirmation
• ❌ The appraisal institution is not on the Head Office's approved list, or the appraisal report is overdue and invalid → Return for re-appraisal; it must not be adopted
• ⚠️ The appraised value deviation is between 20% and 30% → Mark the risk point, proceed to Step 3, but highlight it in the final report

⚠️ Do not adopt the value of collateral that has not been appraised or whose appraisal is overdue and invalid, and do not substitute "having an appraisal report" for "the appraised value is reasonable"

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Step 3: Verification of the Completeness of Registration Procedures

Execution Instructions:Verify the legal validity of the mortgage or pledge registration, the priority right to repayment, and the standardization of certificate management.

Execution Steps:

1. Consult references/registration-requirements.mdConfirm the registration authority and registration requirements for each collateral category
2. Check the registry to confirm whether the collateral has any prior mortgage, prior pledge or other priority right
3. For collateral with multiple-ranking mortgages, calculate the comprehensive loan-to-value ratio = total secured claims / appraised value, which must not exceed the maximum loan-to-value ratio for the collateral category
4. Verify whether the original title certificates are centrally kept by the operations department and whether the ledger is complete
5. Pay attention to tax priority: if the taxpayer's tax arrears arose before the collateral was created, tax takes priority over the mortgage right

Gating conditions:

• ✅ Registration complete and no conflict with prior rights → proceed to Step 4
• ❌ Key title certificates missing, forged or inconsistent with registration information (C5 triggered) → red alert, deemed invalid security, must not proceed to subsequent processes
• ❌ Ownership of the collateral is disputed or undisclosed duplicate mortgage/pledge exists (C2 triggered) → red alert, consent of the priority right holder must be obtained or supplementary disclosure made, and no subsequent process may proceed until resolved
• ⚠️ Minor defects in registration information (e.g., no buffer period reserved for the registration term) → mark as a risk point, proceed to Step 4 but highlight in the final report

⚠️ Do not skip the priority right of repayment verification; the registry must be checked to confirm there is no prior mortgage and no duplicate mortgage

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Step 4: Dynamic monitoring during the existence period

Execution instructions: During the credit existence period, regularly monitor the collateral value, physical condition and ownership changes, and activate the response mechanism when an early warning is triggered.

Execution steps:

1. Consult references/monitoring-frequency.md, and carry out each monitoring item according to the monitoring frequency
2. Check collateral value fluctuations (quarterly); a decline of ≥15% triggers a yellow warning, and ≥25% triggers a red warning
3. Check the physical condition of the collateral (on-site inspection every six months); if the damage rate is >20% or it has been idle for >6 months, revaluation is required
4. Check ownership changes (real-time monitoring); seizure/freezing/transfer immediately triggers a red warning
5. Check insurance status (quarterly); remind of renewal 30 days before the policy expires
6. For collateral that triggers an early warning, implement the value top-up mechanism (the customer must top up the margin, add collateral or repay part of the loan early within 15 working days)

Gating conditions:

• ✅ Collateral status is normal, no early warning triggered → proceed to Step 5
• ⚠️ Yellow warning triggered (value decline ≥15%) → mark as a risk point, generate an early warning notice, proceed to Step 5
• ❌ Red warning triggered (value decline ≥25% or ownership change) → immediate red alert, activate the top-up mechanism or reduce exposure, must not be ignored

⚠️ Do not skip the on-site inspection step; image materials (photos/videos) must be retained, noting the shooting time, location and inspector

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Step 5: Disposal compliance check

Execution instructions: When the collateral disposal conditions are triggered (overdue, default, escalation of risk warning), execute disposal in accordance with legal procedures and ensure compliance.

Execution steps:

1. Confirm the conditions for initiating disposal (90 days overdue/default event/serious insufficiency of security/bankruptcy liquidation)
2. Carry out written collection and evidence preservation (retain proof of service, initiate management of the statute of limitations)
3. Prioritize negotiated disposal (self-sale/discounted debt offset/agreed auction); the disposal price must be confirmed by an appraisal institution
4. If negotiation fails, apply to the court to realize the security interest or file a lawsuit, and apply for property preservation
5. Disposal proceeds shall first repay the loan principal and interest, liquidated damages and expenses for realizing the claim, and shall be repaid in the order of registration
6. After disposal is completed, cancel the mortgage/pledge registration and release the title certificates

Gating Conditions:

• ✅ Disposal procedure completed compliantly → Output disposal completion report
• ❌ The disposal procedure involves illegal circumstances (e.g., auction reserve price below 70% of the appraised value, failure to perform notification obligations) → Red warning; may continue only after correction

⚠️ The statute of limitations management must not be skipped, and it must be ensured that the right to win the lawsuit is not lost; the auction reserve price must not be lower than 70% of the appraised value

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Constraints

Regulatory basis: "Guidelines for Collateral Management of Commercial Banks" (Yinjianfa [2017] No. 16) — full-process requirements for collateral admission, appraisal, registration, monitoring, and disposal Book Two Property Rights of the Civil Code (Sub-book Two Security Interests) — establishment and realization of mortgage and pledge rights Interim Regulations on Real Estate Registration and their implementing rules — real estate mortgage registration procedures Measures for the Registration of Accounts Receivable Pledge (People's Bank of China Order [2019] No. 4) — rules for accounts receivable pledge registration Measures for the Unified Registration of Chattel and Rights Security (People's Bank of China Order [2021] No. 7) — rules for chattel pledge registration

1. Lawful ownership of collateral: The collateral must be lawfully owned by the borrower or a third party, with complete ownership certificates, and must not be subject to judicial restrictions such as seizure, freezing, or detention
2. Valid appraisal: The appraisal report must be within its validity period; the value of overdue collateral must be reappraised before it can be used as a basis for credit granting
3. Complete registration: Registration formalities must be complete and valid, and the other-right certificate or registration certificate must be put into custody within the prescribed time limit
4. Compliant loan-to-value ratio: The loan-to-value ratio must not exceed the upper limit for the category (real estate 70%, land 60%, equipment 50%, accounts receivable 80%, intellectual property 30%, inventory 60%, financial assets 90%)
5. Monitoring execution: During the existence period, monitoring must be carried out at the required frequency; a value decline of ≥15% must trigger an early warning, and ≥25% must trigger replenishment or exposure reduction
6. Prohibition of exceeding authority: This skill only provides collateral risk assessment; it must not provide credit approval decisions or collateral disposal price recommendations
7. Mandatory red lines: If any veto condition (C1-C6) is triggered, the subsequent process must be stopped immediately, and an "unqualified guarantee" conclusion must be output; it must not be ignored because "the customer's qualifications are good"

Audit Trail

After each collateral risk assessment execution, generate an audit log record:

{
  "skill_name": "credit-collateral-risk-mgmt",
  "skill_version": "2.0.0",
  "execution_time": "2026-05-05T15:30:00+08:00",
  "operator": "信贷审批官/风险经理",
  "business_scenario": "贷前评估/审批审查/贷后监控/风险处置",
  "collateral_count": 3,
  "steps": [
    {
      "step": "数据确认与验证",
      "result": "pass",
      "data_source": "信贷系统押品台账"
    },
    {
      "step": "准入合规性筛查",
      "result": "pass",
      "rejection_triggered": false
    },
    {
      "step": "价值评估合理性审查",
      "result": "warning",
      "warning_details": "房产评估价值偏离市场价18%,接近20%阈值"
    },
    {
      "step": "登记手续完备性核验",
      "result": "pass",
      "registration_verified": true
    },
    {
      "step": "存续期动态监控",
      "result": "pass",
      "alert_level": "yellow"
    },
    {
      "step": "处置合规性检查",
      "result": "not_applicable",
      "reason": "未触发处置条件"
    }
  ],
  "compliance_check": {
    "c1_triggered": false,
    "c2_triggered": false,
    "c3_triggered": false,
    "c4_triggered": false,
    "c5_triggered": false,
    "c6_triggered": false
  }
}

Audit log retention period: At least 3 years.

Gotchas

#1: Ignoring the restrictive conditions of the appraisal report leads to inflated value

• Symptoms: The appraisal report appears compliant on the surface, but there are major restrictions in the "Special Matters Statement" (such as long-term leases on the collateral, planning adjustments, etc.), causing the actual value to be lower than the appraised value
• Cause: Focusing only on the appraisal value figure without carefully reading the full appraisal report, especially the conditions restricting use
• Solution: Step 2 must require reading the "Special Matters Statement" and "Restrictive Use Conditions" sections of the appraisal report word by word; any restrictive conditions found must be highlighted in the report and the expected collateral value adjusted

#2: Incorrect calculation of multiple-ranking mortgages leads to insufficient guarantee

• Symptoms: Only the bank's mortgage ranking is considered, without calculating the amount of prior mortgages, causing the comprehensive loan-to-value ratio to exceed the upper limit
• Cause: Failure to query the complete registry, or failure to correctly calculate the comprehensive loan-to-value ratio (total secured claims/appraised value)
• Solution:Step 3 must query the registry to confirm all prior mortgages and calculate the comprehensive mortgage ratio; if the upper limit is exceeded, a red alert must be issued

#3: Omission of insurance renewal leads to collateral risk exposure

• Symptoms:The collateral insurance policy expires without renewal, and in the event of fire/damage or other risk events, insurance compensation cannot be obtained
• Causes:No insurance renewal reminder mechanism has been established, or after reminding, the customer's renewal status was not tracked
• Solution:Step 4 must check the insurance status, remind the customer to renew 30 days before policy expiration; if not renewed upon expiration, handle it according to the C6 one-vote veto condition

#4: Illegal disposal procedures lead to loss of priority repayment right

• Symptoms:During the disposal process, the notification obligation was not fulfilled or the auction procedure was illegal, resulting in the court revoking the disposal result
• Causes:Eager to dispose and liquidate, ignoring statutory procedural requirements (such as the auction announcement period and notification of holders of preemptive purchase rights)
• Solution:Step 5 must strictly follow statutory procedures; every stage must leave a trace; procedural violations must be corrected immediately

Examples

Example 1: Pre-loan collateral准入 assessment

User input:

客户名称:XX制造有限公司
授信申请编号:CRED-2026-001234
业务场景:贷前评估
押品清单:
  1. 房产:商业用房,位于北京市朝阳区,面积500平方米,评估价值1500万元,评估基准日2026-03-15
  2. 设备:通用生产设备,评估价值300万元,评估基准日2026-04-01
申请金额:1000万元

Skill execution process:

1. Step 0: Confirm the collateral list is complete and contains key fields
2. Step 1: Verify that the real estate and equipment are both on the acceptable list; the maximum mortgage ratio is 70% for real estate and 50% for equipment
3. Step 2: The appraisal institution is on the head office's approved list, the appraisal base date is less than 6 months from the application date, and the value is reasonable
4. Step 3: The real estate mortgage registration has been completed and the other rights certificate has been obtained; the equipment chattel pledge registration has been completed
5. Step 4: Ongoing monitoring (not applicable in the pre-loan scenario, skipped)
6. Step 5: Disposal compliance check (not applicable in the pre-loan scenario, skipped)
7. Output the collateral risk report

Output key points:

• Core conclusion: Collateral is sufficient, guarantee coverage ratio 180% (total collateral value 18 million yuan/application amount 10 million yuan)
• Risk tip: The real estate is located in a non-core area; it is recommended to lower the mortgage ratio by 5%
• Alert level: None

Example 2: Post-loan collateral value monitoring

User input:

客户名称:XX贸易有限公司
业务场景:贷后监控
押品清单:
  1. 存货:铜材,评估价值500万元,上次评估基准日2025-12-01
历史预警:无

Skill execution process:

1. Steps 0-3: Skipped (post-loan monitoring scenario; admission/appraisal/registration already completed)
2. Step 4: Check inventory value fluctuations; the monthly fluctuation of copper futures prices is >10%, initiate mark-to-market valuation, and find that the current market value is 4.2 million yuan, a decline of 16%
3. Step 5: Trigger a yellow alert, generate an alert notice, and require the customer to top up the margin or add collateral within 15 working days
4. Output the collateral risk monitoring report

Output key points:

• Core conclusion: Collateral value fell by 16%, triggering a yellow alert
• Risk measure: A top-up notice has been generated; the customer must top up 800,000 yuan in margin within 15 working days
• Alert level: Yellow

Out of Scope

• This skill is not responsible for on-site collateral appraisal work (which must be performed by a third-party appraisal institution)
• This skill does not provide credit approval decision recommendations (it only provides collateral risk assessment; approval decisions are handled by the credit-approval Skill)
• This skill does not execute the actual operations of collateral disposal (it only checks the compliance of disposal procedures)
• This skill does not handle the final write-off process for non-performing assets (which must be handled by the non-performing asset disposal system)
• If the user requests the above content, clearly inform them and recommend contacting the relevant department or using the appropriate tool

Output Format

Output a structured collateral risk report, containing the following sections:

Section	Content	Data Type
Basic Report Information	Report number, generation time, business scenario, customer name	Table
Collateral Inventory Details	List item by item the collateral name, category, owner, appraised value, valuation base date, loan-to-value ratio, registration status	Table
Admissibility Compliance Check Results	Whether the collateral is within the acceptable list and whether any prohibited circumstances exist	Table (Pass/Fail/Warning)
Value Assessment Reasonableness Review Results	Appraisal institution qualifications, valuation base date, appraisal method, value deviation degree	Table (Pass/Fail/Warning)
Registration Formalities Completeness Verification Results	Registration authority, registration number, priority right to repayment, title certificate management	Table (Pass/Fail/Warning)
Duration Dynamic Monitoring Results	Value fluctuations, physical condition, ownership changes, insurance status, warning level	Table (Normal/Yellow Warning/Red Warning)
Veto Condition Check Results	C1-C6 trigger status (Triggered/Not Triggered)	Table
Risk Conclusions and Recommendations	Collateral adequacy conclusion, risk level, disposal recommendations (if any)	Text
Audit Log	Execution time, operation steps, data sources, compliance check results	JSON

📋 Downstream Compatibility: This output can be parsed and used by the credit-due-diligence Skill and credit-approval Skill

Disclaimer: This report is for reference only and does not constitute a credit approval decision recommendation. Collateral value appraisal is based on existing data and appraisal methods, and the actual value may change due to market fluctuations. Collateral risk assessment does not replace credit approval decisions; the final credit decision must comprehensively consider multiple factors such as the borrower's credit status, repayment capacity, and collateral adequacy.

Reference shared/disclaimer-template.md template to ensure that every output includes necessary statements such as "does not constitute investment advice."