Risk Mitigation

Dynamic Collateral Management

Traditional loan management systems treat collateral as static data, updated manually and rarely adjusted. This approach overlooks the constantly changing nature of asset values in secured lending.

Canopy transforms collateral management into a real-time, automated process. By integrating with Automated Valuation Platforms (AVPs), our system continuously tracks collateral values, enabling immediate adjustments to manage risk proactively.

For example, a loan secured by publicly traded securities can be monitored through live market feeds. If values fall below set thresholds, Canopy triggers protective measures automatically—no manual intervention needed.

Automated Risk Response System

Canopy doesn’t just update numbers; it acts. When collateral values drop, our system recalculates loan-to-value (LTV) ratios and takes action if thresholds are breached. This could include:

• Generating margin calls
• Issuing top-up requests
• Adjusting payment schedules
• Initiating liquidation protocols in critical cases

These automated workflows ensure rapid, consistent responses to changing risks.

Comprehensive Risk Intelligence

Canopy also delivers portfolio-wide intelligence, allowing lenders to:

• Track historical trends in collateral values
• Identify concentration risks across asset types
• Monitor borrowers’ total exposure across multiple loans

This transforms collateral management into a dynamic risk mitigation tool, enabling lenders to predict issues and take action before they escalate.