Credit Risk Rating

Evaluate risks and make better decisions for credit origination

Credit Risk Rating Module

Software for the implementation and execution of rating models

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.

Screen shot ACTICOs credit risk rating module


Key Features

Centralized credit risk rating platform

The Credit Risk Rating software supports the implementation of all rating models, internal and external, on one centralized platform.

Graphical model implementation

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.

PD, LGD, and EAD risk parameter calculations

Any risk parameter such as PD (probability of default), LDG (loss given default), and EAD (exposure at default) can be efficiently calculated.

Complex risk rating workflow

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.

Regulatory Compliance

The rating software conforms with and in many cases exceeds the requirements of international banking regulations.

Central auditable database

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.

features
"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."
Ariffin Morad, Senior Advisor, Maybank Indonesia
Implementation & Configuration

Graphical implementation and auditable creation of ratings

Credit Risk Rating Life Cycle

ACTICO Workplace



The configuration framework (ACTICO Workplace) of the Credit Risk Rating software is based on ACTICO's Business Rules Management System (BRMS). The ACTICO BRMS enables all rating models, user interfaces, and workflows to be flexibly adapted and extended. All configuration changes are subject to comprehensive version management and a permissions concept.

ACTICO Rating Manager


Credit analysts are provided with a web-based user front-end to perform and manage risk ratings. The application supports the risk rating process, including collection and import of risk-related data, calculation of the risk ratings, and multi-stage, role-based override and approval processes. All rating data is stored in a fully auditable rating database.