Risk Factors
Identify and categorize all risk factors relevant to the loan or product type. Use a table listing each factor, its weight, and data sources.
4.8
on G2
Free Finance Template
Risk evaluation for [loan/product type]
Use this template to risk evaluation for [loan/product type].
| Field | Details |
|---|---|
| Category | Finance |
| Owner | [Team or owner] |
| Version | [Version number] |
| Effective Date | [Date] |
| Review Cycle | [Monthly / Quarterly / Annual / Event-based] |
| Status | [Draft / In Review / Approved] |
Identify and categorize all risk factors relevant to the loan or product type. Use a table listing each factor, its weight, and data sources.
| Item | Details | Owner | Status |
|---|---|---|---|
| [Item or requirement] | [Describe the relevant detail, evidence, or decision] | [Owner] | [Open / Complete] |
| [Item or requirement] | [Describe the relevant detail, evidence, or decision] | [Owner] | [Open / Complete] |
[Add context, assumptions, exceptions, evidence links, screenshots, calculations, or reviewer comments.]
Explain the quantitative scoring model: how individual factor scores combine into a composite credit score. Include score bands and their meanings.
| Item | Details | Owner | Status |
|---|---|---|---|
| [Item or requirement] | [Describe the relevant detail, evidence, or decision] | [Owner] | [Open / Complete] |
| [Item or requirement] | [Describe the relevant detail, evidence, or decision] | [Owner] | [Open / Complete] |
[Add context, assumptions, exceptions, evidence links, screenshots, calculations, or reviewer comments.]
Document the key financial ratios (DSCR, LTV, debt-to-equity, etc.) with acceptable thresholds for each risk tier. Use a table with pass/watch/fail thresholds.
| Item | Details | Owner | Status |
|---|---|---|---|
| [Item or requirement] | [Describe the relevant detail, evidence, or decision] | [Owner] | [Open / Complete] |
| [Item or requirement] | [Describe the relevant detail, evidence, or decision] | [Owner] | [Open / Complete] |
[Add context, assumptions, exceptions, evidence links, screenshots, calculations, or reviewer comments.]
Detail collateral types, valuation methods, haircuts, and lien position requirements by loan tier.
| Item | Details | Owner | Status |
|---|---|---|---|
| [Item or requirement] | [Describe the relevant detail, evidence, or decision] | [Owner] | [Open / Complete] |
| [Item or requirement] | [Describe the relevant detail, evidence, or decision] | [Owner] | [Open / Complete] |
[Add context, assumptions, exceptions, evidence links, screenshots, calculations, or reviewer comments.]
Define who can approve loans at each dollar amount and risk level. Use a table mapping loan size and risk rating to the required approval authority. Use tables for all structured data. Include specific numeric.
| Item | Details | Owner | Status |
|---|---|---|---|
| [Item or requirement] | [Describe the relevant detail, evidence, or decision] | [Owner] | [Open / Complete] |
| [Item or requirement] | [Describe the relevant detail, evidence, or decision] | [Owner] | [Open / Complete] |
[Add context, assumptions, exceptions, evidence links, screenshots, calculations, or reviewer comments.]
Template Structure
Use this finance template as a starting point, then customize each section to match your internal workflow, evidence, and signoff needs.
Identify and categorize all risk factors relevant to the loan or product type. Use a table listing each factor, its weight, and data sources.
Explain the quantitative scoring model: how individual factor scores combine into a composite credit score. Include score bands and their meanings.
Document the key financial ratios (DSCR, LTV, debt-to-equity, etc.) with acceptable thresholds for each risk tier. Use a table with pass/watch/fail thresholds.
Detail collateral types, valuation methods, haircuts, and lien position requirements by loan tier.
Define who can approve loans at each dollar amount and risk level. Use a table mapping loan size and risk rating to the required approval authority. Use tables for all structured data. Include specific numeric.
Write a Credit Risk Assessment Framework in a professional, analytical tone. Structure with:
Identify and categorize all risk factors relevant to the loan or product type. Use a table listing each factor, its weight, and data sources.
Explain the quantitative scoring model: how individual factor scores combine into a composite credit score. Include score bands and their meanings.
Document the key financial ratios (DSCR, LTV, debt-to-equity, etc.) with acceptable thresholds for each risk tier. Use a table with pass/watch/fail thresholds.
Detail collateral types, valuation methods, haircuts, and lien position requirements by loan tier.
Define who can approve loans at each dollar amount and risk level. Use a table mapping loan size and risk rating to the required approval authority.
Use tables for all structured data. Include specific numeric thresholds. Reference industry-standard methodologies where applicable.
Framework ID: CRA-CRE-002 | Effective Date: 2026-02-01 | Owner: Chief Credit Officer
| Factor | Weight | Data Source | Assessment |
|---|---|---|---|
| Borrower creditworthiness | 25% | Credit bureau, financial statements | FICO score, payment history, existing obligations |
| Property cash flow | 25% | Rent rolls, operating statements | Net operating income, occupancy rates, lease terms |
| Market conditions | 15% | CoStar, CBRE market reports | Vacancy rates, cap rate trends, absorption rates |
| Collateral quality | 20% | Independent appraisal | Property condition, location grade, environmental risk |
| Sponsor experience | 15% | Internal due diligence | Track record, net worth, liquidity |
Each factor is scored 1–5 (1 = Excellent, 5 = Unacceptable). Weighted composite score determines risk rating:
| Composite Score | Risk Rating | Classification | Pricing Spread |
|---|---|---|---|
| 1.0 – 1.5 | 1 – Minimal Risk | Pass | SOFR + 150–175 bps |
| 1.6 – 2.5 | 2 – Low Risk | Pass | SOFR + 175–225 bps |
| 2.6 – 3.0 | 3 – Moderate Risk | Pass | SOFR + 225–300 bps |
| 3.1 – 3.5 | 4 – Acceptable Risk | Pass-Watch | SOFR + 300–375 bps |
| 3.6 – 4.0 | 5 – Watch | Special Mention | Case-by-case |
| 4.1+ | 6 – Substandard | Decline | N/A |
| Ratio | Pass | Watch | Fail |
|---|---|---|---|
| Debt Service Coverage (DSCR) | ≥ 1.30x | 1.15x – 1.29x | < 1.15x |
| Loan-to-Value (LTV) | ≤ 70% | 71% – 75% | > 75% |
| Debt Yield | ≥ 10% | 8% – 9.9% | < 8% |
| Borrower Liquidity (months P&I) | ≥ 12 months | 6 – 11 months | < 6 months |
| Property Type | Max LTV | Appraisal Method | Environmental |
|---|---|---|---|
| Multi-family | 75% | Income approach + comparable sales | Phase I required |
| Office | 70% | Income approach | Phase I required |
| Retail | 65% | Income approach + comparable sales | Phase I + Phase II if flags |
| Industrial | 70% | Cost + income approach | Phase I + Phase II required |
| Loan Amount | Risk Rating 1–2 | Risk Rating 3 | Risk Rating 4–5 |
|---|---|---|---|
| Up to $5M | Senior Credit Officer | Credit Committee | Credit Committee + CCO |
| $5M – $25M | Credit Committee | Credit Committee + CCO | Board Credit Subcommittee |
| Over $25M | Credit Committee + CCO | Board Credit Subcommittee | Full Board approval |
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Template FAQ
Common questions about using and generating a credit Risk Assessment.
Q: What is a credit Risk Assessment?
A: A credit Risk Assessment is a structured document for risk evaluation for [loan/product type].
Q: Can I download this credit Risk Assessment as Word or PDF?
A: Yes. This page includes free downloads in DOCX, PDF, and Markdown formats so you can edit, share, or import the template into your documentation system.
Q: Can Docsie generate this from a video?
A: Yes. Upload a process walkthrough, training recording, or screen capture to Docsie, then use this template structure to generate a first draft automatically.