Risk Assessment Model
The Risk Assessment Model (RAM) facilitates credit risk appraisal of a borrower through a judicious mix of objective and subjective methodologies and acts as a comprehensive database for borrower’s rating information. RAM is the largest deployed internal risk rating solution in India.
The Risk Assessment Model offers:
- Workflow based internal risk rating process for a borrower
- Facilitates industry risk assessment and supports integration of external industry data feeds
- Facilitates integration with Customer Relationship Management Systems, Loan Origination Systems and Core Banking Systems for exchange of data
- Facilitates periodic / Ad-hoc review of borrower’s risk rating
- Standardisation and automation, ensuring a robust rating process
- Two-dimensional rating approach (borrower & facility rating) as per regulatory guidelines
- Estimation of probability of default by generating transition matrix
- Capturing relevant default, loss and recovery data for loss given default and exposure at default estimation
- Facilitates risk-based pricing and estimation of risk-adjusted return on capital
- Ability to host multiple models, including bank's existing rating models
- Facilitates Financial Spreading including automated ratio calculations
- Enables generation of projected financials and assess its impact on rating of the borrower
- Enables calculation of Risk Adjusted Pricing
Technology features
- Graphical user interface-based parameterisation
- Centralised data management
- Rating process workflow customisation as per institution's
credit process - Flexibility to configure and customize workflows to suit specific business requirements
Value-added features
- Enables validation of rating models through certain built-in statistical approaches
- Audit trail of rating changes
- Ability to develop institutional knowledge via access to scores of all rated companies
- Ability to host our standard off-the-shelf, customised or institution’s internally developed rating model
- Ability to customise financial data templates basis business requirements
CRESS for Retail Scoring
Our CRESS offering includes:
- Credit scorecards using Crisil risk assessment methodologies
- Configuration of multiple scorecards
- Setting up factors and weights for scoring, grading scales and hierarchy levels
- Built-in workflow for multi-level assessment and review (maker-checker)
Technology features
- Graphical user interface-based parameterisation
- Centralised data management
- Rating process workflow customisation as per institution's credit process
Value-added features
- Facility to capture and retrieve data required for pooling IRB retail
- Enables storage and retrieval of borrower-specific electronic documents
* The product features mentioned above are available as modules and can be procured individually, independently or as a comprehensive package.
Capital Assessment Model
The Capital Assessment Model offers:
- Library of predefined reports that can be customised
- Ability to conduct stress testing and scenario analysis
- Retail pooling and segmentation across geography, product type, collaterals and more
- Calculation of specific and general risk for interest rate risk, including securities and derivatives, as per the duration approach, equity and equity derivatives
- Netting module for derivative positions (swaps, forward rate agreements and futures etc.) as per RBI guidelines, helping reduce capital requirements as no disallowance is applied to positions
Technology features
- Graphical user interface-based parameterisation
- Data archival capability for audit/report generation
- Data drill-down capability across Basel II asset classes, geographies and entities
- Staging area to enable rectification of erroneous input data
Value-added features
- Built-in statistical approaches for rating model
- Audit trails of rating changes
- Access to scores of all rated companies in an industry
- Ability to customise financial templates
* The features mentioned above are available as modules and can be procured individually/independently, or as a comprehensive package.
Brecon – Early Warning System
Brecon's strength lies in combining external developments with the bank/financial institution’s (FI) internal customer data, and drawing conclusions by fusing these with Crisil's expertise in the credit and research domains. Crisil has developed a library of 180+ signals for effective detection of early warnings.
Key features of the service:
- Identify vulnerable accounts in the bank/FI's portfolio and flag potential non-performing assets
- Deliver granular and actionable risk-intelligence through user-friendly interface
- Manage entire workflow - from identification of vulnerable accounts to account restructuring
- Equip every level of authority in the bank/FI with real-time information on vulnerable accounts
- Enables compliance with Reserve Bank of India's requirements on reporting of Special Mention Accounts and corrective action planning