Maybank envisaged replacing their existing risk rating system with a robust and flexible software solution to meet the growing needs of its business. The new desired system should establish a foundation for the bank to build rating models which meet the Basel II IRB guidelines. In order to induce efficiency in their business processes, Maybank also wanted to incorporate workflows around automated risk ratings.
Based on the drivers of this project, the Bii Maybank management was looking for a robust, scalable and centralized rating system, including collateral and risk data enhancements which are part of the risk data management system to support calculation of risk weighted assets in accordance with the internal rating-based approach. This system should be agile, flexible and dynamic enough to implement current and future requirements of the growing industry. Another important requirement was simulation capabilities to determine portfolio behavior to changes in market parameters. This is required to effectively hedge portfolio risk against economic factors.
ACTICO's Credit Risk Management Platform met the bank's demands. The powerful solution offers a robust, scalable and centralized platform based on ACTICO's rule-technology ACTICO Rules. Maybank benefits from the results:
Automated credit assessment process
Transparent credit risk rating process for corporate loans
IRB Approach implemented in shorter time duration
Portfolio simulation capabilities
Independent management of rating models by business users
"Besides providing the technology, ACTICO also transferred adequate knowledge to empower us for making amendments in the application, based on user needs. The service, to respond to all problems, is reliable and formulated in clear and detailed Service Level Matrix. It truly helps us to enter the next level of Credit Risk Rating with Basel – IRB Compliance to expand more on loans with risk based selections."
Leonardi Widjaja, Senior Vice President,
Head of Basel and Enterprise Risk Management, Maybank