Total Exposure Overview
Is your Financial Institution (FI) support team bogged down with tickets from your line complaining about the nCino UI performance, or experiencing Apex CPU timeouts when performing a credit action or recalculating credit risk exposure? Luckily, there are some common issues that can be easily fixed! As part of this blog post, we will be focusing on performance as it relates to nCino’s Credit Risk Exposure (aka. Total Exposure).
nCino’s Total Exposure feature helps financial institutions understand and measure the maximum potential loss to the institution if the borrowing entity were to default on their loans. Within nCino this is typically broken out into three main exposure categories: Direct, Indirect, and Affiliated. Direct Exposure is when the borrowing entity is listed as a borrower or co-borrower on the loan, Indirect is when the entity is listed as a guarantor, and Affiliated is when the entity is indirectly liable due to ownership of another entity that has either Direct or Indirect Exposure to a loan.
The tricky thing with a Financial Institution’s Exposure is that every institution calculates it slightly different via their own proprietary formulas. Due to this, nCino built their Total Exposure feature to be extremely flexible. However, this also means if not configured optimally your Salesforce org’s performance can be severely impacted. Below are our top 3 main culprits for potential performance issues and what you can do to remedy them.
1. Automatic Recalculation with Connections
Everyone wants and loves real-time data, but when it comes to nCino’s Total Exposure feature this can lead to disaster. It’s important to only have the automatic calculation checkbox selected if your institution isn’t leveraging connections to calculate the specific exposure type. The reason being is that calculating exposure is a very system intensive process and when leveraging connections/depth you are creating a lot more permutations that need to be checked when determining an entity’s total exposure.
2. Automatic Recalculation Active During Nightly Batch Loads
Piggybacking off the first main culprit above, it is imperative that whenever your nightly batch job is running that all exposure type records are set to inactive. This will ensure that the system is not attempting to perform any additional processing which may lead to timeouts and other types of system degradation (i.e. Additional records not being correctly updated from the core). After all batch jobs have successfully run from the core, you can then leverage the nCino Recalculate Exposure batch job to update the value for your households.
3. Leveraging Custom Apex to Calculate Instead of nCino’s Calculated Field Path
Given that each Financial Institution may have slightly different logic that they want to use to calculate exposure, nCino provides a tremendous amount of flexibility within their Total Exposure feature. Unfortunately, we’ve noticed that many folks don’t know how powerful the tool can be. The Calculated Field Path tool allows you to leverage custom formulas to help drive how a specific exposure type should be calculated. Most every exposure type we’ve come across can be satisfied by leveraging this method instead of writing complex custom Apex. Many partners will suggest custom Apex from the beginning due to their lack of knowledge, but at Lucro we try to follow Salesforce’s “Clicks not Code” philosophy as much as possible.
There are many other potential factors for Total Exposure performance issues and we at Lucro offer an nCino Org Health Check to help your Financial Institution identify these problem areas. Reach out to find out how we can partner together and profit together.