Credit Risk

Calculate Economic and Regulatory Capital Requirements for Credit Portfolios

Increasing market complexity coupled with the explosive growth of alternative investments and credit derivatives have put pressure on organizations to move quickly to implement new enterprise-wide risk models. Many organizations still maintain multiple risk measurements with each business unit maintaining their own models and methodologies.  This reality makes it difficult for organizations to reliably measure and anticipate their risk exposure for the organization as a whole.

When choosing a credit risk management solution you need answers:

• Do you accurately understand the sources of concentration in your credit portfolio?
• Can you improve portfolio performance through hedging, capital reallocation and\or reducing the exposure to certain credit grades, in geographies and industry sectors?
• Does your current credit risk management solution help you meet regulatory requirements, while allowing you to adapt to a changing regulatory environment?
• Are you able to quickly and accurately assess opportunities for growth while maintaining an optimized diversification of your credit risk?
• Are certain lines of business and/or products forcing your organization to take on too much risk for the potential rate of return?

With Insightful Financial Solutions for Credit Risk Management you have the following capabilities:

• Data Integration: Integrate with your current data architecture
• Open Architecture: Expedite credit risk model development and deployment
• Risk-Based Capital Credit Risk: Implement advanced industry-leading analytics and model portfolio losses using the Merton-based approach
• Advanced Model Workflows: Meet the transparency requirements of the regulators and improve communication of information across all business units
• View Risk Concentrations: View credit risk concentration by credit grade, geography and industry sector

Insightful Financial Solutions for Credit Risk Management will shorten the time it takes to develop and deploy new risk models. When business units change up their portfolio, analysts can quickly adjust and account for new instruments and investment vehicles. Insightful’s Financial solutions are built upon our flexible, yet rigorous programming platform, S-PLUS.

For more information, please make your selection from among our white papers, case studies and archived Web casts:

• Archived Events & Web Casts
• Success Stories
• Whitepapers & Application Notes

If you would like to read how S-PLUS is used in complex financial models you can review these titles available for sale:

• Second Edition of Modeling Financial Time Series with
  S-PLUS, by Eric Zivot and Jiahui Wang
• Quantitative Risk Management: Concepts, Techniques, and Tools, by Alexander J. McNeil, Rüdiger Frey, & Paul Embrechts
• Statistical Analysis of Financial Data in S-PLUS, Rene Carmona

For more information on how Insightful Financial Solutions for Credit Risk Management can help your institution better measure, manage and report on risk please contact us via email or call in the US/Canada (800) 569-0123, UK +44 (0) 1256 339800, or Zurich +41 (0)44 251 68 44.