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

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Questions?

  • For any risk solutions related queries, please contact:
    +91 22 3342 8266
    risksolutions@crisil.com