Banks and financial service providers require rating models to precisely assess credit risks and serve as a basis for more accurate and better informed decisions in credit origination and loan monitoring. Rating models are also used to calculate risk-weighted assets and regulatory capital requirements (IRBA) and measure impairment of financial instruments in accordance with IFRS 9. Banks must establish well-structured rating systems and a consistent history of risk-related data to satisfy these requirements. Rating models in any number and level of complexity need to be implemented with high flexibility on one centralized platform. At the same time, banks face an increasing number of mandatory regulatory requirements related to auditability and documentation.
The ACTICO Credit Risk Rating Module is available on premise or in the cloud. Discover ACTICO Cloud Services!
The Credit Risk Rating software supports the implementation of all rating models, internal and external, on one centralized platform.
Rating models are implemented, maintained and tested in an easy-to-use, fully graphical rating model authoring tool. All modifications are recorded in an audit-proof versioning system.
Any risk parameter such as PD (probability of default), LDG (loss given default), and EAD (exposure at default) can be efficiently calculated.
The Credit Risk Rating software provides an intuitive web-based front-end that supports complex risk rating workflows based on qualitative and quantitative risk assessments.
The rating software conforms with and in many cases exceeds the requirements of international banking regulations.
All input and output data is stored in a centralized, consistent credit risk rating database, which forms the basis for efficient model validation and backtesting processes.
"It is simple to create, manage and maintain risk models with ACTICO Rules. This approach not only provides better visibility of the risk models but also gives us better control of processes."