The term "surety management" refers to the systematic recording, administration, and monitoring of sureties (guarantees) that a company either issues or receives. Sureties are financial security instruments, typically provided by banks or insurance companies, which serve as guarantees to creditors for obligations undertaken by third parties. The purpose of surety management is to reduce risk, track deadlines, and ensure regulatory compliance.
Surety Recordkeeping: Creating and maintaining data on sureties, including guarantor, beneficiary, amount, duration, and contract details.
Deadline and Term Monitoring: Automatic reminders for expiration dates, renewals, returns, and cancellations.
Document Management: Digital management and storage of surety certificates, contracts, and related correspondence.
Risk Assessment: Analysis and evaluation of default risks and the creditworthiness of guarantors.
Controlling & Reporting: Generation of reports and evaluations on open, expired, or canceled sureties.
Approval and Audit Processes: Mapping of internal workflows for the authorization and review of sureties.
Integration with Finance and ERP Systems: Connection to existing systems for consistent data management and process automation.
A construction company manages all warranty sureties for completed projects and is automatically notified about upcoming return deadlines.
An industrial firm receives advance payment guarantees for machinery orders and tracks their validity and release.
A corporate group issues internal sureties for subsidiaries and centrally monitors and documents these guarantees.
A financial controller prepares a monthly report on all active sureties for internal risk analysis.
