Description

Credit risk is the risk of loss due to a counterparty's inability to meet its obligations (repayment of a loan or other line of credit) in accordance with the agreed terms.

Credit Risk Services can help lenders identify, monitor, manage and mitigate credit risks. It provides a systematic review of loan portfolios and identifies opportunities for improving credit monitoring and collection policies and practices. In particular, these services assist in developing state-of-the-art credit portfolio management techniques and credit treasury approaches.

Features

• Establishing an appropriate credit risk environment: working out a credit risk strategy that contains the necessary policies and procedures for identifying, measuring, monitoring and controlling credit risk in all of the bank's activities across its entire portfolio, as well as in individual transactions.
• Developing, evaluating and validating credit risk models in compliance with the requirements set forth in the Basel Capital Accord.
• Optimizing credit risk management processes.
• Assisting with valuations and rating considerations for loans and other credit exposures.
• Leveraging the Basel II methodology to address IFRS (International Financial Reporting Standards) requirements.
• Developing and using the techniques of Credit Risk Stress Testing.
• Helping to set up Credit Risk Limit systems to ensure that the bank's actual risk-taking is in line with its risk-bearing capacity.

Benefits

• Improved capabilities through cost-control and loss avoidance.
• Improved capabilities for managing risk-adjusted profitability through more efficient pricing, capital allocation, and capital reserves.
• Improved understanding of credit risk models; additional insight into leading industry practices.