Banking Industry Offerings

Credit Risk Data Analyzer

Over the years, banks’ borrower profiles have undergone many changes due to socio-economic factors. Banks today face varied challenges in assessing and monitoring the credit risk of borrowers and in taking prompt corrective actions when required. Factors such as the introduction of new regulations like BASEL-II, exponential increase in the number of borrowers, cross-country exposures, and expanding geographical reach have increased these challenges.data-analyzer-icon


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Business Challenges

  • The available data is huge and the same needs to be properly interpreted. There is a great need for implementation of system that can correctly analyze available credit risk data
  • Analysis of the Financial Statements is most important as raw financial data cannot be used for credit risk estimation
  • Trade checks need to be performed before sanctioning a loan with regard to Anti Money Laundering / Know Your Customer
  • The Structure of credit facility & collateral has to be properly gathered and reviewed
  • If a credit participates in a group, analysis of the Credit Group should also be made
  • Need to review the Industry to which the credit belongs to.
  • Projection/profitability parameters need to be analyzed
  • The Country risk needs to be assessed
  • If the credit belongs to a common risk group, Concentration risk needs to be assessed
  • There is a great need for formulation of Credit risk models, Borrower Rating system to assess PD and Transaction Rating System to assess LGD
  • Banks need a system to calculate Risk Weighted assets and capital calculation
  • Need for a system to do Risk based pricing

What We Offer

The process of measuring and managing credit risk is a complicated task. This is because there are many uncertain elements involved in determining both the likelihood of a default happening and the expense of the default. Credit Risk Data Analyzer systems allow the analyses of thousands of borrowers within a consistent framework. These systems permit comparisons across the entire loan portfolio. Credit risk implies default of the borrower or deterioration of borrowers' credit quality. A bank should be able to assess the default in each exposure for all types of transactions. This is just where Kumaran steps in to assist you with our Credit Risk Management services.

Credit risk data analyzer does the complete analysis and assessment of the credit. It looks into all aspects like financial, management, personal, industry and financial statement quality and arrives at a rating for each borrower. LGD is computed based on the Facility and collateral selected.

Benefits of Credit Risk Data Analyzer

IT-enabled Credit Risk Data Analyzer ensures accurate prediction and estimation of credit risk. By making accurate predictions about future credit losses, banks are able to keep their capital adequate enough to meet depositor's expectations. These are the benefits of proper credit risk data analysis:

  • Improved performance management
  • Improved product pricing
  • Improved selection of clients according to risk profile
  • Reduction in losses
  • Optimized allocation of economic capital
  • Greater levels of compliance
  • Protection against loss of reputation

Testimonials

Clients

Nesbitt Burns Inc, Toronto, Canada

Providian Financials, US

Citibank, US

Contact Us

Email:
banking@kumaran.com

Phone:
1-800-kumaran