With the rapid evolution of the US banking regulatory and market landscapes, risk rating processes have become increasingly critical. Banks are under pressure to churn out models at a faster pace while ensuring that associated model risks are managed effectively. Rating processes based on spreadsheets or fragmented technology are increasingly being replaced by advanced credit risk rating platforms (RRP) as banks strive to remain competitive in the marketplace and comply with regulatory expectations.
The significance of a fully functional RRP lies in its deep impact on various critical enterprise risk management processes, including the underwriting process, capital allocation, and regulatory re-porting. Benefits of an advanced credit risk rating platform include:
- Reduce time to market for credit risk models through streamlined implementation and deployment processes.
- Incorporated best practices in model development, including support for sensitivity analysis, enhanced model monitoring, benchmarking, and analytical reporting.
- Seamless integration across business processes and systems.
- Centralized model inventory with robust version control and change management capabilities.
- Improvements in risk rating process efficiency and user friendliness.
The Whitepaper, authored by Bala Balachander (Principal @ Deloitte) and Jess Zacharias (Senior Manager @ Deloitte), focuses on the broader industry developments related to risk rating execution. The paper is published by Deloitte, with whom ACTICO previously collaborated with the implementation on a risk rating platform.
The ACTICO Credit Risk Management Platform is a solution that encapsulates several of the features and capabilities of an advanced Risk Rating Platform. Find out more about RRPs and ACTICO's Credit Risk Management Platform and how this can enable you to elevate your credit risk management.