Credit Risk Rating Platform

Traditional approaches to credit risk assessment models are too rigid and inflexible to meet the increasing demands of complexity, transparency and flexibility.  With the Credit Risk Rating Platform, Innovations offers a platform that enables transparent implementation of rating models and their seamless deployment in operations.  The Credit Risk Rating Platform is constructed on the basis of components. The primary system components are illustrated in the following figure: 

Transparent implement Rating Models

The Model Configuration Platform is the core component for creating and maintaining credit risk rating models. The Visual Rules Modeler offers a particularly intuitive approach to the graphical modeling of internal rating models.  The representation of logic mimics human thought processes, making it extremely well suited for use by business people.  Along with computation and decision-making logic, the user interface elements are also specified.  The results are rating models and the User Interface (UI) models that are required for seamless operationalization. 

Dynamically Generate User Interfaces

Qualitative risk factors are often involved in the assessment of default probabilities, and loss severities and must be evaluated. To that end, the web-based user interface elements (such as data entry screens) required for the operational rating process are generated dynamically from the UI models.  Model changes (for example, the addition of qualitative factors) can thus be transferred directly to the interface. The result?  Maximum flexibility of both model and user interface.

Perform Ratings

The Rating Manager supports the credit analyst in performing and managing credit risk ratings.  This component provides the required menu structures to select the rating model and the dynamically generated interfaces for the data entry and results dialogs.  Innovations’ Rating Manager can fulfill the most complex requirements of any rating process.

Archive Ratings in Compliance with Basel II

The Basel II Framework poses explicit requirements for the storage and archival of ratings.  All ratings-relevant input and output data are archived in the Rating DB within the Credit Risk Rating Platform.  By coupling with loss data, the rating models are consistently validated and backtested.

Connect to External Databases and Systems

The Innovations’ Credit Risk Rating Platform can be connected to a bank’s internal systems and data sources to facilitate bi-directional data exchange.  External data providers (credit rating agencies, for instance) can also be connected to the platform.