Daily Concentration Report
Automated VBA-driven workflow that calculates loan concentration risk daily, strengthening regulatory monitoring and real-time oversight.
Client: Community Bank
Type: Regulatory Risk Monitoring & Workflow Automation (VBA + Excel)
Overview
Loan concentrations represent pools of credit exposure that share common risk characteristics. Regulators typically define a concentration of credit as obligations exceeding 25% of a bank’s capital structure — meaning concentrated exposure can materially impact financial health.
Historically, concentration reporting was performed monthly (or at best weekly), limiting timely visibility into emerging risk.
I designed and implemented a fully automated daily concentration reporting workflow that has been in continuous use for over four years.
The Challenge
- Daily loan data delivered via emailed report
- Manual download and file placement
- Time-intensive concentration calculations
- Limited flexibility in defining custom exposure groupings
- Infrequent reporting cadence
The bank needed faster, more flexible monitoring without increasing administrative burden.
The Solution
The system was built in two coordinated components:
1. Outlook Add-In (VBA)
- Single-click automation
- Moves the daily emailed attachment to a shared network location
- Standardizes file naming and storage
2. Excel-Based Concentration Engine (VBA + Structured Tables)
- Automatically reads the latest daily file (or historical files)
- Calculates regulatory and custom loan concentrations
- Allows configurable inclusion/exclusion logic
- Enables user-defined monitoring thresholds
- Flags exposures approaching concentration limits
The result is a daily, automated concentration snapshot available to leadership.
Key Features
- Automated ingestion of daily loan data
- Customizable concentration schema
- User-defined threshold monitoring
- Historical file selection capability
- Repeatable daily workflow with minimal user interaction
Impact
- Increased reporting cadence from monthly/weekly to daily
- Improved real-time risk visibility
- Reduced manual handling and data processing time
- Strengthened regulatory monitoring discipline
- Delivered a sustainable solution operating reliably for 4+ years
This project demonstrates how lightweight automation can significantly enhance regulatory oversight — improving risk awareness and governance without introducing complex enterprise systems.