Credit risk in context
Develop your credit risk models by building context around your borrowers to deliver higher accuracy, whether modelling, probability of default or providing early warning alerts
Identify early warnings
- Identify early warnings and signs of distress in the loan book.
- Understand what is already committed and how it links to the borrowers ecosystem.
- Run impact assessments to understand the impact on the complete portfolio when a certain company runs into financial difficulties
Retrospectively examine new COVID-19 related lending
A lot of lending had to be done quickly, ignoring risk models and risk appetite, perhaps even undergoing a lighter-touch ‘Know Your Client’ process.
- Identify problem cases quickly and direct efforts towards reviewing them
- Reduce the annual review cycle ‘hump’ by reviewing cases throughout the year
- Minimise the impact on your teams
Understand second order risk
- Understand the entire supply chain, across a lending portfolio
- Understand the complete impact of foreclosing on a client
- Identify, quickly, supply chains and additional businesses that could be in trouble