The exception register contains every identified exception documented with: the loan identifier, the exception type, the specific policy provision involved, the deficiency identified, the risk implication of the deficiency, the recommended remediation action, the responsible owner, and the status of remediation. For exceptions accepted rather than remediated, where the credit team determines that the exception does not require correction, the acceptance rationale and authorizing officer are recorded alongside the original finding.
The register is designed for examination review from the start: every entry is formatted to answer the questions an examiner will ask when reviewing the institution's loan review program, what was found, why it matters, who is responsible for addressing it, and how it was resolved. Institutions that produce exception registers in this format consistently receive better examination assessments of their loan review function than those that produce informal finding lists that require interpretation before their implications can be assessed.
