What does 'total exposure' mean in the context of nCino?

In the context of nCino, 'total exposure' refers specifically to the total amount of money lent to a group of related entities. This concept is crucial in understanding the risk a financial institution has tied up in borrowers who may share similar financial circumstances or ownership. By analyzing total exposure, institutions can better assess the cumulative risk they face from lending to these interconnected entities, which can help in managing their portfolios and ensuring they are not overly concentrated in one area. It aligns with principles of risk management and regulatory compliance, allowing lenders to make informed decisions regarding additional lending and capital allocations.