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Highlights

Quickly and comprehensively evaluate credit risk of portfolios

Identify potential problems in the credit risk portfolio

Evaluate credit risk from both a product specific perspective as well as enterprise level perspective across products

Integrate the understanding of credit risk at a portfolio level and for use by the line managers

Use a combination of standard credit risk models to better react to potential problems by having multiple perspectives on credit risk

Base Credit Decisions on Objective Portfolio Analysis

Every day managers in bank take decisions on how much to lend and who to lend to, based on their understanding of the attractiveness of the opportunities. However, making timely and accurate decisions about credit opportunity and its attractiveness requires accurate evaluations and perspectives that take into account characteristics common to the complete product offerings as well as takes into account specific product level characteristics.

These decisions are made by front line credit managers handling specific products as well as enterprise wide risk managers who set limits by taking a larger perspective on the risk exposure of the enterprise.

These two communities of users need to both interpret similar data with different perspectives and incorporate different analytical models and perspectives on similar credit information.

Keywords
Basel II and risk
credit risk
enterprise risk
market risk
market risk management
portfolio analysis
portfolio risk


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