Rule-based Risk Assessment

The precise assessment of borrower default risk and loss severity are key factors for a successful credit risk management and fundamental prerequisites for an adequate credit portfolio management.  The risk rating models that form the basis for key risk parameters are generally highly complex and must be continually adapted to regulatory requirements and market dynamics.

In recent years, the Basel II Framework in particular has given rise to the need for continuous and costly implementation and improvement of risk rating models.  The possibility of applying internal rating models for credit risk evaluation is of very high relevance in this environment.

Credit Risk Rating Platform

With its Credit Risk Rating Platform, Innovations offers a comprehensive solution that enables transparent and flexible implementation and operationalization of credit risk rating models. Innovations’ Credit Risk Rating Platform comprises the following core components:

Model Authoring Platform: The central platform for the development, maintenance and improvement of risk assessement models. The graphical modeling environment facilitates development and maintenance of rating models to a degree such that it can be done by personnel of the risk management division.

Rating Manager: A Web-based application for Credit Analysts to manage and perform operational ratings. It supports the entire rating process, from data collection through risk calculation to final approval.

Rating Database: A Basel II-compliant relational database that stores all rating-relevant input and output data.

Portfolio Optimization: Impact Analysis and Portfolio Optimization through Simulations and Stress Tests.