Loan Risk Field Setup

Overview of IL480

The Loan Risk Field Setup screen allows your organization to add and configure the fields you wish to utilize when calculating a loan's risk rating. To set up your loan risk fields:

• From the DDI Connect main menu, double-click Financial Services
• Double-click Loan
• Double-click Setup
• Double-click Loan Risk Field Setup. You will see a screen similar to this one:

The following information is displayed for each field:

Field	Description
Field name	Name of the field you are creating
Priority	Unique number assigning the priority of the field
Required	If selected, this field will be required for all loans when setting up loan risk
Active	If selected, field is active and available for selection
Description	Description of the field
Database field	Establishes the type of database field to be used with this field. Click the drop down arrow to select one of the following options: Option Description Prompted Field Prompts the user to fill in the information needed Calculated Field Allows you to configure a calculation for the field value. See below for additional information User Defined Database field If you established any database fields, they will be listed individually beneath the Calculated Field option
Data type	Click the drop down value to select the type of data for this field. Your options are: Data Type Description Character Field will expect a character value. Character is defined as any letter, number, space, punctuation mark or symbol that can be typed on a computer Date Field will expect a date value Decimal Field will expect a numeric value with decimal points Integer Field will expect a numeric value without decimals Logical Also known as Boolean. This field expects operators such as AND, OR, XOR or NOT to create true/false statements
Display format	Click the drop down arrow to select the appropriate display format. Your options are: Date, Percentage, Integer, Large Decimal or Small Decimal
Risk weight	Establish the weight of this particular field when it comes to evaluating the overall risk. For example, church membership might have a lower weight than a church's annual income. If you elect to utilize a risk weight, you will have to set up the risk comparison (described below)

To add a new field, click the New button. The fields will now enable for editing:

Enter the information as described above.

Calculated Field: Build Calculation

If you selected Calculated Field in the Database field option, the following button appeared:

When you click the Build Calculation button, you will see the following screen:

This is where you will build the calculation for the field you are creating. It works very similar to the way you would create a formula in a spreadsheet program, other than you are limited to the types of calculations you can do. For the purposes of this documentation, we will build a calculation that determines the average donation amount per member of a church.

The first step is to create two fields...one for the annual revenue from gifts, and the other for the church membership. Once those fields have been created, you can build the calculation.

To obtain the average, we will divide the total revenue from gifts by the membership of the church to obtain the average annual amount per member.

On the calculation screen, click the drop down arrow to the right of the Field name field, and locate the field you created for the annual gift revenue:

Click Add Field. This moves the field up into the calculation box:

Next, click the function that you wish to use. In our example, we wish to divide, so we'll click the / button:

Next, we want to select the final field in our calculation, which is the total church membership. Locate the field by clicking the drop down to the right of Field name, and click Add Field. The screen will now look something like this:

When you have finished building your calculation, click OK. The Calculation field is now populated:

Risk comparison button

If you wish to assign a risk weight to a field, you must also configure the Risk comparison. Click the Risk comparison button to the right of the Risk weight field. You will see this screen:

You can establish up to five levels of comparison ratings. In the field value is field, click the drop down arrow. You can set the value to be equal to, not equal to, greater than, greater or equal, less than or equal, or less than. In the second field, enter the value you wish to use for the comparison. The risk settings are configured in code set 0611 - Loan Risk Codes. So, if you set Low Risk where the field value is less than .5, the system will return a "1" for Low Risk. Otherwise, if it is less than 1, it will return a "2", and so on. The output is then multiplied by the Risk weight field and added to other fields that have their risk weight calculated. The end result is the risk rating for the loan.

Click OK when you have configured the risk comparison.

When you have finished setting up the field, click Save to retain your changes.