Neiman Marcus 2009 Annual Report Download - page 400

HSBC Card & Retail Services Version 1.13
NMG Operating Procedure Document MAY 2010
Section 1: Introduction
1.1 Purpose and Scope
This policy establishes the guidelines, consistent with sound underwriting practices and regulatory guidance, affecting systemic and
manual credit extension activities on the Neiman Marcus Group portfolio.
This is not an exhaustive list of Risk Management Policies and Operating Procedures but rather a representation for NMG and HSBC
regarding the processes described herein.
1.2 Objectives
The objective of this policy is to establish formalized guidelines within which operational and systemic activities related to credit
extension processing is set in place for the following covered activities:
New Accounts / Originations
Portfolio Management / Authorizations
Guideline Increase / Decrease / Reinstatements
Reporting / Authority Limits
1.3 Definitions and Abbreviations
CLD Credit Line Decrease
CLI Credit Line Increase
D&B Dunn & Bradstreet Credit Bureau
DPD Days Past Due
FACT Act Fair and Accurate Credit Transactions Act of 2003 is a United States law. The act allows consumers to
request and obtain a free credit report once every twelve months from each of the three nationwide
consumer credit reporting companies The act also contains provisions to help reduce identity theft, such as
the ability for individuals to place alerts on their credit histories if identity theft is suspected, or if deploying
overseas in the military, thereby making fraudulent applications for credit more difficult. Further, it
requires secure disposal of consumer information.
FAS Financial Authorization System
NMGH Neiman Marcus Group, comprised of Neiman Marcus and Bergdorf/Goodman
RAAC Risk Asset Acceptance Policy
REM Request Manager — form used to update system access/entitlements
RCM Retail Credit Management
Ratification Ratification is the act of confirmation by the RCC of management actions within assigned levels of
authority. Ratification applies to decisions by management prior to implementation which is then ratified/
confirmed at the next RCC meeting.
OFAC Office of Foreign Asset Control
USA Patriot Act Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct
Terrorism Act of 2001: Among other things, the act expands the Secretary of the Treasury's authority to
regulate financial transactions, particularly those involving foreign individuals and entities.
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