SAS^® Credit Risk Management for Banking

The flow of credit in global financial markets has slowed from a glacial pace to a virtual standstill. And credit markets threaten to stay that way despite immense amounts of cash being pumped in by governments and central banks around the world.   In the Spotlight Better Management of Credit Risk: Webcast Excerpts Panelists from the mid-tier banking, credit union and lending sectors discuss automating credit risk rating, balancing risk and optimizing capital allocation. SAS the established leader in credit risk management Chartis Research positions SAS as the established leader in the Retail Banking Credit Risk Management Systems 2008 Competitive Landscape (PDF: 48KB) What will it take for banks to regain enough confidence in the financial system to get credit markets moving again? Better credit risk management practices are essential. SAS can help. Benefits With confidence in today’s credit market at an all-time low, it is critical for banks to engage in better credit risk management practices that can optimize risk-adjusted pricing and returns throughout the organization. SAS helps you: Access and aggregate credit data across disparate systems and sources. Seamlessly integrate credit scoring/internal rating with credit portfolio risk assessment. Accurately forecast, measure, monitor and report potential credit risk exposures across the entire organization on both counterparty and portfolio levels, allowing seamless integration of credit scoring with credit risk. Evaluate alternative strategies for pricing, hedging or transferring credit risk. Optimize allocation of regulatory capital and economic capital. Meet the reporting and risk disclosure requirements of regulators and investors for a wide variety of regulations such as Basel II. Manage the entire lifecycle of a loan – from origination, to servicing, to collection/recovery. Features In-house scorecard development and monitoring Applies SAS' advanced statistical techniques to your own proprietary credit data, enabling you to perform more accurate credit risk assessments. Supports a wide range of modeling techniques – classification trees, neural networks, time-series modeling, etc. Generates highly accurate credit loss forecasts by developing complex roll rate models, predicting delinquencies and performing vintage curve analysis. Accurate risk calculations and flexible reporting Quickly and accurately calculates current and potential risk exposures – probability of default, exposure at default, credit migration, regulatory capital, risk weighted assets, credit value at risk (CVaR) and economic capital. Enables improved credit loss forecasting, implementation of appropriate hedging strategies, improved capital allocation and maximized return from risk management investments. Lets you conduct stress tests, perform mark-to-market calculations, model risk factors, run Monte Carlo simulations and explore multiple scenarios. Lets you view, validate, audit and customize every step of the process as needed. Provides flexible reporting capabilities, with customizable templates that enable reports to be published to a Web portal or shared via e-mail or wireless devices. An open, flexible and extensible framework Extends the value of existing operational systems and applications by allowing you to access data from any source and customize any risk management methodology based on your requirements. Creates a foundation for effective credit risk management that takes advantage of your existing technology investments. How SAS Is Different The SAS approach to risk management offers a more complete, end-to-end solution that integrates data aggregation, analytics and reporting within a transparent framework. With SAS, you get: An open, extensible environment with complete capabilities for retail credit scoring, corporate credit rating and credit portfolio risk management. A robust risk engine that offers in-depth modeling and the analytical capabilities necessary for developing a propriety and market differentiating economic capital model. The flexibility to anticipate future modeling methodologies and regulatory changes. Complete transparency and auditability, which facilitates supervisory review – internally, by rating agencies and by regulators – as required by Basel II and other regulations. Award-winning predictive analytics that can help you analyze and determine the best course of action for "toxic" (illiquid) assets. An integrated firm-wide risk management environment that provides a consolidated view of all types of risks (credit, market, counterparty and liquidity) to help you maintain the profitability and health of the firm.

Looking for more information on credit risk management? Read the special report "Effective Credit Risk Management." See what analysts are saying about risk management from SAS. Read related success stories. Ready to put THE POWER TO KNOW® to work for you? Contact your local SAS office or call us toll free at 1-800-727-0025 (U.S. and Canada). Contact SAS for pricing information and to learn more about our products and solutions. Sign up for one of our free e-newsletters. Download FREE special report "Effective Credit Risk Management"