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Credit Risk

Risk. Treasury. Regulatory. Controlling. Accounting.

Credit risk is the odd that a client or counterparty is not able or willing to fully or partially repay its debt or when the quality of the client or counterparty decreases, which has a negative effect of the value of assets.

RaPID allows quantifying the credit risk and reporting it historically (as time series), as of today (current position) or look forward into the future.

Exposure / large exposure / credit portfolio analysis

  • Gross exposure based on on-balance and off-balance (guarantees given, credit lines, letter of credits)
  • Net exposure including collaterals, guarantees and netting
  • Slicing & dicing according to any kind of dimensions
  • Full drill down

Expected loss (EL)

Potential future exposure (PFE)

Credit Valuation adjustment (CVA)

Risk weighted asset (RWA)

  • Fully parametrizable
  • Exposure at default
  • Credit conversion factor
  • risk weight
  • normal / stressed view

Basel / CRR

Calculation of the capital charge

  • standardized
  • IRB foundation
  • IRB advanced
  • normal / stressed view

Concentration risk

  • Products
  • Sectors
  • Industries
  • Countries
  • Segments
  • Currencies
  • Group risk analysis (connected clients)
    • based on economic relations
    • based on legal relations
    • graphical representation as nets
  • Slicing & dicing according to any kind of dimensions
  • Full drill down

Internal Capital Adequacy Assessing Process (ICAAP)

Historical / time series analysis

  • exposure over time
  • Impairment over time
  • Account classification over time
  • Rating classes over time

Stress testing
Possibility to stress any kind of parameter / risk factor

Rating

  • Flexible rating models for
  • Retail
  • Banks
  • Corporates
  • SME

Probability of default (PD)

  • Calculation of effective PDs
  • Statistical testing effective versus used