Paul Miles — CLM Industry Business Glossary for the Credit Lifecycle (Day 1 & Day 2)

Tag: S-2026-06-27-paul-clm-industry-business-glossary Type: own-writing Author(s): AI agent (Claude Opus 4.8) for Paul / Red Strata Date of source: 2026-06-27 Date ingested: 2026-06-27 Authority weight: medium — an AI-drafted industry reference glossary anchored to verified-current regulation/guidance; not yet SME-confirmed, so a reference seed rather than governed master. Raw file: S-2026-06-27-paul-clm-industry-business-glossary.md

What it claims

An exhaustive-but-prioritised industry Business Glossary for the Credit Lifecycle covering Day 1 (origination → drawdown) and Day 2 (monitoring → recovery), produced as a reference point for the CLM glossary mastering programme. Scope is Corporate / SME / Capital Markets primary with Consumer aligned to the asset class, organised by 18 lifecycle stages and tagged to the 7 regulatory cycle elements named in the regulatory action (credit underwriting, early warning system, covenant monitoring, SICR, annual review & re-rating, forbearance, UTP).

It contains 201 terms — a 140-term Core Glossary plus a 61-term Asset Class Extension wave (Day 1 = 101, Day 2 = 100; priority Core 59 / Essential 97 / Extended 45; Hard tags 101 / Soft 100), each carrying a paraphrased industry definition, 3-level category, lifecycle stage, cycle element, asset-class applicability, priority tier, Glossary Wave, relationships to related terms, and Policy / Process / Regulatory tags. It uses the same column model as the squad’s T-06 Master Business Glossary (extending the client Taxonomy Template V0.1), adding five analytical columns. Regulatory anchors were web-verified current (CRR/CRR3 Reg (EU) 2024/1623 eff. 1 Jan 2025; EBA/GL/2020/06; EBA/GL/2016/07; IFRS 9; AnaCredit; BCBS 239; ECB RDARR Guide May 2024; plus CBI Mortgage Measures & Mortgage Credit Directive for consumer terms).

Asset Class Extension (2026-06-27): a coverage assessment against the industry-standard asset-class hierarchy for a European/Irish retail bank (AIB/BOI style — CLM_Asset_Class_Hierarchy_and_Coverage.xlsx) found the 140-term Core Glossary already covers every asset class at the lifecycle level; gaps were asset-class-specific product/attribute terms only. Decision: extend, not rebuild — 61 terms added across Retail mortgages/consumer/cards (~23), SME/Business (~13), Corporate & CRE (~12), Capital Markets/Treasury (~8) and regulatory exposure-class anchors (~5).

Reconciliation with a second perspective (2026-06-28): Paul supplied an independently-produced 440-term glossary (Perspective 2). A normalised match + triage found 184 of the 440 already corroborated the 201-term Perspective 1; of the 256 unique to Perspective 2, 198 were genuine net-new concepts (included), 20 were glossary operating-model “meta” terms (excluded — belong to the build kit, not the credit taxonomy) and 38 were duplicates under another name (excluded, mapped). Recommended a single 399-term reconciled final glossary (201 P1 + 198 P2; provenance Both 151 / P1-only 50 / P2-added 198; priority Core 124 / Essential 201 / Extended 74; master-first scope = 325 Core+Essential). Perspective 2’s strengths were CDE-level granularity (amount/income/status decomposition), data-governance/DQ controls, and CCR/treasury & reporting mechanics. Deliverables: CLM_Business_Glossary_Reconciled_Final.xlsx (+md, with About/Final Glossary/Reconciliation sheets and Source-Perspective + Inclusion-Rationale columns), CLM_Business_Glossary_Reconciled_Summary.pptx (B&W, +md), and a reconciliation approach record.

Deliverables: Excel glossary + Markdown twin; black-and-white executive PowerPoint + Markdown twin; an Approach & Work Breakdown record. All saved to _ClaudeWorkspace/03 Credit Lifecycle/Industry Business Glossary/.

Perspective 2 full-term standardisation (2026-06-29): checked all 440 Perspective-2 term names against the full term as listed by the regulator in the source; 23 were expanded/corrected from acronyms or shorthand to the full official form (e.g. SA-CCR → Standardised Approach for Counterparty Credit Risk; COREP/FINREP → Common/Financial Reporting; SICR Trigger → Significant Increase in Credit Risk Trigger; 12-Month/Lifetime ECL → …Expected Credit Loss; NPE Ratio → Non-Performing Exposure Ratio; Point-in-Time/Through-the-Cycle PD → …Probability of Default; Unlikely to Pay → Unlikeliness to Pay (CRR Art.178); ADC/IPRE/HQLA/BER/NACE expanded). 21 cross-references in Related Terms updated to match. Definitions, tags, IDs and counts unchanged (still 440). Verified against sources (EBA RTS SA-CCR, EBA ITS COREP/FINREP, CRR Art.126a/178, IFRS 9). New version saved as CLM_Business_Glossary_Second_Perspective_v2.xlsx with a Change Log sheet.

Perspective 2 full regulatory definitions (2026-06-29): Paul asked that definitions also be the full definition as listed by the regulator, not a short summary. Agreed scope: sourced full definitions only for terms a regulation formally defines (verbatim for EU law, faithful for IFRS/BCBS, each cited); other terms labelled honestly. Added three columns to v2 — Definition Basis / Regulatory Definition (sourced) / Definition Citation. Result: 28 terms now carry the full sourced regulator definition with citation (7 verbatim EU-law: PD/LGD/CCF/connected-clients/forbearance CRR Art.4 & 47b; 21 faithful IFRS 9 / CRR / EBA / AnaCredit — ECL suite, credit-impaired, SICR, 30-DPD backstop, default/UTP/materiality, NPE, effective maturity, SA-CCR, ADC, IPRE, outstanding nominal, NACE); 47 more carry a precise citation with full text pending; 365 operational terms labelled ‘Industry definition (no single formal regulatory definition)’ — not invented. Tooling constraint recorded: primary-source consolidated texts time out and IFRS/standards pages are JS-rendered with no connected browser, so verbatim sourcing at full scale needs the Chrome extension or a further search pass; definitions inserted were sourced via verifiable web search of the cited instruments.

Notable quotes

“Ensure credit taxonomies are consistent and complete for each Business Asset Class capturing all data relevant to the credit risk indicators, across the credit lifecycle.” — the regulatory action driving the work (as stated in the project brief).

What’s speculative vs. asserted

• Asserted (grounded): the regulatory anchors and their current status (web-verified); the T-06 / T-05 column and tag model (read from the squad’s templates); the term definitions (standard industry/regulatory definitions, paraphrased).
• Speculative / to-confirm: the indicative Policy domains (POL-01…POL-16) are placeholders to map to the bank’s governed policy register; all rows are Drafted, soft tags are Not reviewed pending SME workshop; the 140-term count is a reference baseline, not the full bank scope (the squad’s earlier sizing estimated ~500–1,000 terms total).

Topics this feeds

• CLM Glossary Acceleration Squad — provides the seed master content the squad’s build kit is designed to produce and govern.
• CLM Data Taxonomy Governance — supplies regulator-aligned terms/definitions for the taxonomy.

Open questions raised

• Endorsement of the Core / Essential / Extended prioritisation and asset-class lead order as the mastering backlog.
• Mapping of indicative Policy domains to the bank’s actual governed policies.
• Additional bank-specific asset classes / specialised lending terms to add as Extended.