How are covenants managed in practice after a loan closes?

For those working in banking, credit, or lending, how is covenant management typically handled in practice once a facility has been closed?

I’m particularly interested in understanding who usually owns the process, how covenant testing and reporting are managed, and what typically happens when a potential breach is identified.

I’d also be interested in understanding how important covenants are during the credit approval process and credit committee discussions. Are they mainly used as ongoing monitoring tools, or do they also play a significant role in determining whether a transaction is approved, how it is structured, and what level of risk a bank is willing to take?

Does the process differ significantly across areas such as corporate lending, leveraged finance, or project finance?

Would be great to hear from people with direct experience on how this works in practice.