Credit Risk
A standard approach to bank credit risk management
Import and structuring of exhibitions
Using the data from the regulations in force, it is necessary to organize the weighting data and aggregation for better calculation.
Calculation
Determine the different risk parameters and calculate the institution's exposure to credit risk.
Visualization
Dashboard to view results by client type, sector, country, and maturity. Alerts on overexposure or undercoverage. Simulation of the impact of a portfolio change.
Credit Risk
Data Processing
Efficiently loading data from balance sheets, files, and ERP systems is crucial for streamlined operations. This process involves extracting relevant information and ensuring compatibility with your data management system.
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Once the data is securely loaded, it undergoes automatic aggregation, providing a overview that facilitates informed decision-making.
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Weightings and Expositions
Automated calculations of exposure weightings are essential for accurately assessing financial risk.
These calculations take into account the nature and rating of each exposure, ensuring a precise evaluation of potential losses. Following this, the Exposure at Default (EAD) is determined, which reflects the anticipated loss in the event a default.
Additionally, Risk Weighted Assets (RWA) and Required Capital are calculated to ensure that financial institutions maintain adequate capital buffers against potential risks.
Regulation and Optimization
This solution plays a crucial role in helping the bank comply with the Basel II/III/IV regulatory framework by providing a comprehensive approach to capital management.
It enables precise calculations of required capital, ensuring that the bank maintains the necessary levels while avoiding overcapitalization., the solution effectively identifies customer segments, sectors, and geographical areas may present risk concentrations, allowing the bank to make informed decisions and enhance its risk management strategies.
By integrating this solution, the bank can achieve regulatory compliance while optimizing its capital allocation.
Result
The application offers a detailed visualization of weightings and exposures, enabling users to effectively monitor the institution's risk levels.
Its highly responsive design ensures seamless interaction, while robust security measures protect sensitive data.
Additionally, the application can be easily integrated into a comprehensive reporting process, streamlining operations and enhancing overall efficiency. This makes it an essential tool for risk management in any financial institution.
Provide an intuitive platform to calculate Risk-Weighted Exposures (RWA) according to the Basel II/III standard approach, and determine the minimum regulatory capital required by the institution.
Experience significant benefits with our credit risk solution.
Enjoy huge time savings through the automation of calculations that are typically done manually, while also reducing the potential for human error.
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Our solution provides clear justification for compliance with the Central Bank's requirements and enables strategic vision by simulating the of changes in allocation or riskier portfolios. It's an ideal fit for small medium-sized banks, microfinance institutions, and non-bank lending institutions.
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