For large projects or high-value contracts, a single financial institution may not be able—or willing—to carry the full risk. Consortium Guarantees allow multiple participants (typically banks or corporate units) to share liability, ensuring the project is backed while protecting each party’s exposure.

RIVO’s Consortium Guarantee feature helps corporates manage this process securely, flexibly, and transparently—with smart limit controls, participation options, and automatic validations.

Why Use a Consortium Guarantee?

Customers typically use this when:

• A single bank or corporate unit can’t support the full guarantee amount.

• Risk needs to be shared among multiple internal entities or external parties.

• They want contractual flexibility—each party can take its own share or delegate responsibility to a lead unit.

• They need automated control over limit booking and commission calculation.

Setting Participation Type

When creating a new Outgoing Guarantee:

Go to
Home → Create Outgoing Guarantee → Tell us some basic details

Under the Participation Type dropdown, select:
Corp Consortium

This enables the Consortium Guarantee RIVO card in the next step.

Two Ways to Structure a Consortium in RIVO

When you select Corporate Consortium as the Participation Type, RIVO offers you two setup options under Consortium Type:

1. Several – Everyone Handles Their Own Share

• Each participant is responsible only for their part of the deal.

• RIVO blocks credit from each party’s own limit.

• Commissions are calculated separately for each member.

• If someone doesn’t have a credit line, their share is still deducted (from the lead unit).

• Third-party participants? Their share is tracked but not booked in RIVO.

🟢 Use this if each member is supposed to manage their own risk.

Example
For a USD 10,000 deal with:
Applicant (70%) – USD 7,000 blocked and commissioned
Sub-Unit (20%) – USD 2,000 blocked and commissioned
Third Party (10%) – Not booked in RIVO

2. Fronting—One Lead Unit Takes It All

• Only the Lead Unit (the Applicant) is exposed to the bank.

• RIVO blocks the entire deal amount from the lead unit’s credit.

• The Lead Unit also pays the full commission.

• Other members (including third parties) are covered under the Lead Unit’s booking.

🟢 Use this if one central party is managing the full responsibility.

Example
For a USD 10,000 deal:
Applicant (90%) – USD 9,000 blocked (includes sub-unit share)
Sub-Unit (20%) – Included in Applicant’s booking
Third Party (10%) – Also included in Applicant’s limit and commission

Adding Consortium Members

Click Add Member to enter participant details:

• Select from organizational units or third parties

• Specify share percentages

• Define commission as per share

RIVO ensures all shares add up to 100% and validates limit availability before proceeding.

Limit Utilization 

Scenario	How RIVO Handles It
Several Participations	Each member’s share is blocked from their own limit (if available)
Fronting Participation	The entire limit is blocked from the lead unit (Applicant) only
Third-party involvement	Booked only if using the fronting structure
Cross-currency deals	Limits shown in deal currency, with hover tooltips for FX detail

 

Viewing Booked Limits

After creation, limits are reflected in the system reports. You can:

• Navigate to the Limits section

• View blocked amounts by participant

• See FX-converted values for cross-currency deals

Summary

RIVO’s Consortium Guarantee feature gives users flexible tools to manage shared guarantee responsibilities. Whether using a Several or Fronting structure, the platform ensures:

• Clear allocation of liability

• Accurate limit blocking

• Proportional or centralized commission handling

• Role-based visibility and FX handling

This allows large guarantees to be managed securely and transparently across multiple parties.