Credit Risk Management
Regain confidence through better optimization of risk-adjusted pricing and returns
But today, there are signs that the worst may be over and that a recovery may be imminent. What will it take for banks to regain enough confidence in the financial system to get credit markets moving smoothly – without risking another financial breakdown? Better credit risk management practices are essential.
How SAS® Can Help
With confidence in credit markets 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. With SAS, you can:
- Access and aggregate credit data across disparate systems and sources.
- Seamlessly integrate credit scoring/internal rating processes with your overall 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 life cycle of a loan from origination, to servicing, to collection/recovery.
How SAS® Is Different
The SAS approach to risk management offers a more complete, end-to-end solution that includes 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 risk management environment that provides a firmwide view of all types of risks (credit, market, counterparty and liquidity) to help you maintain the profitability and health of the firm.
Related Products and Solutions
SAS® Risk Management for Banking
SAS Risk Management for Banking supports a bank's risk management activities by delivering functionality for all major risk types, as well as data management and reporting. The solution allows business units to calculate risk measures independently and separately, as well as firmwide, using models and correlated aggregation techniques. The solution's integrated risk applications can be used together, individually or in any combination, enabling you to start in one area (e.g., market risk) and then expand usage to other areas (e.g., credit risk, firmwide risk or ALM) as needed.
SAS® Credit Scoring for Banking
As any credit manager in the banking industry knows, controlling risk is a delicate business. Too much credit exposure can lead to high default rates and charge-off percentages; too little exposure often means lost business and revenue. SAS helps banks manage this balancing act with SAS Credit Scoring for Banking, which provides fast, accurate credit scoring for nearly all consumer-lending products.
Ready to learn more?
Call us at 1-800-727-0025 (US and Canada) or request more information.