Collateral Management

Collateral Management

Collateral management is the method of granting, verifying and managing collateral transactions in order to reduce credit risk in unsecured financial transactions.

Banks, current collateral management processes are fragmented and inefficient. On the other hand collateral based lending is increasing day by day in banking sector.

In order to enable banks to ensure that the use of collateral is optimised and appropriately managed, ITTS tieup with CMI

CMI provides expert collateral management, stock monitoring, grain storage and inspection services to financial institutions.CMI have built an enviable reputation in the market because of our deep knowledge of the logistics and commodity value chains in Africa, as well as our expertise in commodity management and storage infrastructure.CMI currently operate in 23 countries across Africa, with a head office in South Africa and a liaison office in Geneva.

CMI Services

Collateral Management #1

CMA is used by financiers to mitigate risk in STC financing transactions, as a risk mitigation control measure together with the rest of the loan security. CMA adds to the controls to ensure the risk behind a transaction falls within a financier’s risk appetite.
We carry professional indemnity (PI) and warehouseman insurance with AON.
There is a clear division in risk and operations between CMA and stock monitoring (SMA).

Stock Monitoring (SMA) #2

SMA is also used by financiers to mitigate risk, but provides less risk mitigation than CMA. The service relates more to tracking and reporting activity and movement of commodities at a specific location or between locations.
SMA covers source-to-destination monitoring throughout the logistics value chain, including land and sea movement.

Storage (SA) #3

This service offering provides for the outsourcing of all storage-related functions and the risk is covered by CMI and AFGRI’s balance sheets.
We guarantee the grade and weight of the commodity for clients.

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CMI Services

Collateral Management #1

CMA is used by financiers to mitigate risk in STC financing transactions, as a risk mitigation control measure together with the rest of the loan security. CMA adds to the controls to ensure the risk behind a transaction falls within a financier’s risk appetite.
We carry professional indemnity (PI) and warehouseman insurance with AON.
There is a clear division in risk and operations between CMA and stock monitoring (SMA).

Stock Monitoring (SMA) #2

SMA is also used by financiers to mitigate risk, but provides less risk mitigation than CMA. The service relates more to tracking and reporting activity and movement of commodities at a specific location or between locations.
SMA covers source-to-destination monitoring throughout the logistics value chain, including land and sea movement.

Storage (SA) #3

This service offering provides for the outsourcing of all storage-related functions and the risk is covered by CMI and AFGRI’s balance sheets.
We guarantee the grade and weight of the commodity for clients.