AVATI Solutions
Credit Risk Engine

Credit Risk Engine

RiskCube CRE is our standalone comprehensive and scalable web based solution for credit rating and scoring for all financial transactions at obligor and facility level for wholesale and retail banking.

This solution greatly enhances the objective capability of the bank to identify, evaluate, assess and manage counterparty and facility credit risk across multiple portfolios. It provides a robust and flexible modeling platform, to efficiently build retail credit rating scorecards and wholesale rating models for evaluation and estimation of credit risk and advanced Basel II risk parameters such as probability of default, loss given default and facility structured ratings for supervisory slotting for all asset classes, counterparties and product types.

KEY FEATURES

» Financial Spreading

Enables flexible financial statement formats for sophisticated financial analyses for the obligation. It uses a proprietary concept - Fact Sheet – which can be effectively leveraged for capturing financial spreads, calculating ratios and building quantitative, qualitative information, evaluation parameters, scorecards and models, based on business user requirements.

» Customizable Customer Information Form

Enables flexible customer information and input formatswhich can be defined by the business users and used for data capture for modeling.

» Customizable Validation Checks

Easy user defined customized validation checks for business rules to financial and quantitative information spreading template to ensure correctness of input data at the end user level.

» Allows Intuitive Construction

Evaluation parameters – whether quantitative, qualitative or transformed - can be intuitively constructed by the modeler. Provision to maintain counterparties and model any type of related quantitative and qualitative information in user defined formats.

» Extremely Flexible

Flexibility to host multiple risk rating models and scorecards – application and behavioral PD and LGD - for rating Obligor / Facility / Industry / Product / transaction. Flexibility in assigning scores and weights to model defined parameters as defined by the business rules of the model. Highly flexible architecture allows configuration of multiple interdependent algorithms for adjustments to rating scores to arrive at the final rating including judgmental overrides.

» Option for Multiple Grade Scales

Enables development of multiple Grade scales with specific definitions or categories of risk. Complete flexibility in defining optional rule based linkages of individual model Grade Scales to Master Rating Scale.

» Facility Risk Evaluation

Capability to configure facility risk evaluation workflow process by linking multiple rating models and instances to produce a facility or transaction rating giving the institution capability for integrated credit evaluation output for different facility dimensions like industry, obligor, security / facility level rating to arrive at the final ratings / risk scores based on master rating scale.

» Menu Driven Interface with user friendly GUI

Enables a menu driven interface for development of Rating model framework through business-user friendly graphical user interface.

» Standard and User Defined Reporting

Ability to generate user defined credit dossiers as well as standard transition matrix and migration reports coupled with an extremely powerful and flexible menu driven tool enabling the business user to configure ad-hoc reports allowing any level of slicing, dicing, filtering and drill-down analysis across a variety of dimensions such as counterparty, products, industries, business segments, ratings to mention a few.

» Advanced Basel II concepts and Model Validation

Capability to define and include model driven and calculated risk drivers such as PD, LGD, complex transformation rules, weights and lookups at multiple levels in any form required by the business rules governing the bank’s credit decision making process. Capableof advanced risk parameter estimation of PD, LGD and EAD for Basel II advanced approach credit risk capital calculation.

» Self-service Scoring

Enables the bank to allow retail customers a web-based self-service scoring form which can be integrated with the desired workflow process.