What is one of the primary actions during a security review?

During a security review, one of the primary actions involves re-assessing personal and corporate guarantors. This process is crucial for determining the ongoing viability and creditworthiness of any guarantees that back a loan or credit facility. By evaluating the financial standing, creditworthiness, and overall risk profile of these guarantors, lenders can make informed decisions regarding the security of their assets.

The role of guarantors is to provide additional assurance for repayment; thus, understanding their financial status and capacity to meet their obligations is key. Changes in the personal or corporate guarantors' circumstances, such as financial deterioration or changes in ownership, can significantly impact the risk associated with the loan.

While reviewing management qualifications, studying market trends, and updating loan documentation are important aspects of credit analysis and risk management, they do not directly address the core task of evaluating the security backing the loan in the same manner as assessing guarantors, which is central to the protection of the lender's interests.