# A Library of Prompts for Review and Justification This document provides a collection of tailored prompts for various user personas within a financial institution to use with an AI copilot (such as the one described in the "Global Risk Control Ecosystem"). These prompts are designed to help users review requests, formulate justifications, challenge assumptions, and ensure decisions are well-supported and aligned with their specific roles and responsibilities. --- ## 1. For the Junior Analyst *Focus: Data verification, understanding the basics, and preparing initial drafts.* ### Reviewing a Request: - "Summarize the key financial metrics for [Company Name] from the attached credit proposal. Check for any inconsistencies between the summary text and the attached financial statements." - "What are the primary risks identified in this credit proposal? Compare them against our standard industry risk checklist for the [Industry Name] sector." - "Extract the key terms and conditions from the 'Loan Covenants' section of this document and list them in a simple table." - "Please verify the calculation of the Debt Service Coverage Ratio (DSCR) in this document. Show me the formula used and the inputs from the financial statements." ### Establishing Rationale: - "Draft a one-paragraph summary of [Company Name]'s financial performance over the last three years, focusing on revenue growth, profitability, and cash flow trends." - "List the primary mitigants for the key risks you identified in the credit proposal for [Company Name]." - "Based on the provided financials, generate a list of clarifying questions I should ask the senior analyst about this deal." - "Compare the key financial ratios for [Company Name] against the industry benchmarks provided in our 'Risk Appetite Framework' document." --- ## 2. For the Senior Analyst / Portfolio Underwriter *Focus: Deeper analysis, challenging assumptions, assessing the deal structure, and forming a recommendation.* ### Reviewing a Request: - "Critically evaluate the management's financial projections for [Company Name]. What are the key assumptions, and how do they compare to historical performance and industry outlook? Identify the most aggressive assumption." - "Analyze the proposed covenant package for this loan. Is it appropriately structured for the level of risk? Identify any loopholes or unusually permissive terms." - "Run a sensitivity analysis on the financial model. What is the impact on the DSCR if revenue declines by 15% or if the base interest rate increases by 200 basis points?" - "This proposal recommends a 'Pass' rating. Search all attached documents and recent news for any counter-arguments or red flags that would challenge this recommendation. Summarize the top three." ### Establishing Rationale & Justification: - "Draft a 'Recommendation' section for the credit memo on [Company Name]. The recommendation is 'Approve with Conditions.' Clearly articulate the primary drivers for the approval and list the necessary conditions precedent." - "The junior analyst flagged an inconsistency in the inventory turnover calculation. Investigate the discrepancy, explain the likely cause, and provide the corrected calculation and its impact on the working capital analysis." - "Generate a list of downside risks for this transaction, even if the overall recommendation is positive. For each risk, suggest a potential mitigant." - "Draft a concise justification for the proposed [Risk Rating] for this loan, specifically referencing the '5 Cs of Credit' (Capacity, Capital, Collateral, Conditions, Character) using evidence from the provided documents." --- ## 3. For the Specialist (e.g., Legal, Compliance, Economist) *Focus: Domain-specific risk identification and policy adherence.* ### Reviewing a Request: - **(Legal):** "Review the 'Events of Default' and 'Guarantees' sections of the attached loan agreement. Are there any non-standard terms or clauses that expose the firm to unusual legal risk? Compare against our standard legal template." - **(Compliance):** "Does the proposed transaction with [Company Name] trigger any specific regulatory limits or reporting requirements under [Specific Regulation, e.g., Volcker Rule, G-SIB surcharge rules]? Cross-reference with our internal compliance policies." - **(Economist):** "Analyze the macroeconomic assumptions used in this forecast. How do they align with our firm's official Q3 economic outlook for [Region/Country]?" ### Establishing Rationale: - **(Legal):** "Draft a memo outlining the legal risks associated with the identified non-standard clauses and recommend specific amendments to the language to bring it in line with firm policy." - **(Compliance):** "Provide a summary of the necessary compliance checks and ongoing monitoring activities that must be implemented if this transaction is approved." --- ## 4. For the Senior Executive (C-Suite, Board Member) *Focus: Strategic alignment, bottom-line impact, and second-order risks.* ### Reviewing a Request: - "Provide a one-page executive summary of the 'Project Titan' proposal. Focus on the strategic rationale, expected financial return (IRR, ROE), total capital commitment, and the top three critical risks." - "How does this proposed acquisition of [Company Name] align with our stated strategic goals for the next three years? Does it increase our concentration risk in any key area according to the latest 'Argus' dashboard summary?" - "What are the potential second-order effects of this transaction? Consider impacts on our brand reputation, employee morale, and relationships with key regulators." - "Compare the key assumptions in this proposal to the 'Project Phoenix' deal from 2022. Are we making similar optimistic assumptions that led to the previous write-down?" ### Establishing Rationale & Justification: - "Draft the key talking points for me to present to the board in support of this decision. Frame the argument around long-term value creation and strategic advantage." - "Generate a list of the most challenging questions the board or investors are likely to ask about this initiative, and suggest a concise, data-driven answer for each." - "Based on the provided analyses, what is the single most compelling reason to approve this deal, and what is the single biggest reason to reject it? Present them as a balanced view." --- ## 5. For the Regulator *Focus: Safety and soundness, compliance with regulations, and institutional risk management practices.* ### Reviewing an Approval: - "I am reviewing the approval for the '[Company Name]' loan. Provide a summary of the firm's justification for assigning a '[Risk Rating]' and highlight all policy exceptions or overrides that were made during the approval process." - "Show me the evidence trail demonstrating that the firm followed its own internal credit policies for this transaction. List the key approval dates and the titles of the approvers." - "Analyze the approved covenant package. Is it consistent with industry-standard practices for a loan of this size and risk profile? Are there any elements that could be considered overly lax from a safety and soundness perspective?" - "Provide all 'Argus' dashboard summaries for the 30 days leading up to this transaction's approval. Were there any 'Amber' or 'Red' flags related to concentration or other limits that this deal would have exacerbated?"