Bank-Internal Risk Rating Platform

A Probability of Default (PD) model estimates the likelihood that a borrower will fail to meet their debt obligations over a defined time horizon — typically one year. PD models are a core component of credit risk management under Basel IRB frameworks and IFRS 9 expected credit loss (ECL) calculations. Banks typically maintain multiple PD models for different borrower segments: corporate obligors, SME borrowers, financial institutions, and retail clients.

ACTICO’s Credit Risk Platform gives credit risk teams a graphical, no-code environment to configure, test, and deploy PD rating models. Whether your PD model is a statistical scorecard, an expert judgement-based rating system, or a hybrid combining financial ratios with qualitative overlays, the platform handles the full model lifecycle — from initial build and validation through to production deployment and ongoing monitoring.

A Loss Given Default (LGD) model estimates the share of an exposure that a lender expects to lose in the event of a borrower default — after accounting for collateral recovery, workout costs, and the time value of money. LGD models operate at the facility level.

ACTICO’s Credit Risk Platform supports the implementation of both regulatory LGD estimates (for IRB approaches) and accounting LGD values (for IFRS 9 stage-specific loss calculations) — on the same centralized platform as your PD models, with full versioning, governance, and workflow capabilities.

Yes. ACTICO’s Credit Risk Platform is designed as one centralized internal ratings platform for both PD and LGD models — as well as any other internal credit risk models your institution maintains. This eliminates the need for separate tooling across model types, reduces operational complexity, and ensures consistent governance and audit trails across your entire model portfolio.

No. The platform integrates seamlessly with existing model logic in other languages. Quantitative risk teams can continue working in their preferred modelling environment, while front-office analysts interact through a clean, web-based interface. There is no need for a lengthy reimplementation of the models.

The platform is built to support the requirements of Basel IRB approaches and IFRS 9 expected credit loss calculations. This includes both regulatory capital estimates (e.g., IRB-compliant PD and LGD) and accounting-based estimates used in stage-specific IFRS 9 loss calculations. Full audit trails, model versioning, and role-based access controls are built in to support model governance requirements under these frameworks.

Yes. The platform includes simulation capabilities that allow teams to test proposed changes to PD, LGD, or other internal rating models against historical portfolios before go-live. This includes rating transition matrices and portfolio-level impact analysis — helping minimize model risk ahead of any new model release.

The platform uses a GIT-based central repository to store and manage all model versions, with full tracking of changes including timestamps and user IDs. Teams can create branches, tag versions, graphically compare model versions, and manage release and deployment workflows, with role-based and team-based access controls throughout.

Yes. The platform is designed for both audiences. Risk model administrators use the graphical drag-and-drop modeler to configure and maintain rating models. Front-office analysts and relationship managers interact through a powerful, user-friendly web interface to capture qualitative and quantitative risk factors, submit ratings for approval, and manage their task lists.