Credit Risk Management
Accurately assess and report the risk of potential credit losses and calculate the capital reserves required to adequately cover that risk.
Banks and other lending institutions must constantly balance risks and rewards. Too high a price on loan products, and you lose the customer; too low, and you starve the profit margin or take a loss. Too much capital on reserve, and you miss investment revenue; too little, and you risk regulatory noncompliance and financial instability.
When every department, line of business and region measures and reports risks differently – with disparate risk management systems – it can be difficult to accurately gauge overall risk exposure and strike the right balance.
SAS Credit Risk Management enables you to:
The SAS solution provides an open, extensible environment with complete capabilities for retail credit scoring, corporate credit rating and credit portfolio risk management. The system is transparent and auditable, thereby facilitating supervisory review, both internally and by regulators, as required by Basel II and other regulations.
- 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, both on the counterparty level and portfolio level.
- Evaluate alternative strategies for pricing, hedging or transferring credit risk.
- Optimize allocation of regulatory capital and economic capital.
- Facilitate regulatory compliance and risk disclosure requirements for a wide variety of regulations such as Basel II.
In addition, the underlying credit risk data model helps firms consolidate credit data from disparate sources and supports faster implementation. No other credit risk management software offers a more complete, end-to-end solution integrating data aggregation, analytics and reporting within a transparent framework.
In-house credit scoring improves speed and accuracy.
SAS Credit Risk Management includes a solution for in-house scorecard development and monitoring. Applying SAS' advanced statistical techniques to your own proprietary credit data enables you to perform more accurate credit risk assessments. The solution supports a wide range of modeling techniques including classification trees, neural networks, time-series modeling and others. Using the SAS solution, you can develop complex roll rate models, predict delinquencies and perform vintage curve analysis to generate highly accurate credit loss forecasts.
Accurately calculate and report risk exposures.
SAS Credit Risk Management enables you to quickly and accurately calculate critical risk measures, such as probability of default, exposure at default, credit migration, regulatory capital, risk weighted assets, credit value at risk (CVaR) and economic capital. Analysts can perform mark-to-market calculations, model risk factors, run Monte Carlo simulations, explore scenarios and build stress tests. Every step of the process can be viewed, validated, audited and customized.
Once the analysis is complete, customizable templates enable reports to be published to a Web portal or shared via e-mail or wireless devices. This flexible reporting capability allows managers to quickly identify problems and meet regulatory requirements related to credit risk.
Leverage existing technology investments.
SAS Credit Risk Management, a component of the SAS Banking Intelligence Solutions, is based on the SAS Intelligence Platform – an open, flexible and extensible framework that leverages existing operational systems and applications. By allowing you to access data from any source and customize any risk management methodology based on your requirements, the solution serves as the backbone for a credit compliance infrastructure within your organization. The solution thereby optimizes and extends the value of existing systems and creates a foundation for effective credit risk management.
From SAS, a leader in analytics for the financial services industry
SAS solutions serve more than 2,000 financial services firms worldwide, including 97 percent of Fortune Global 500 banks. More than 25 percent of SAS customers are from the financial services sector.
Interested in SAS Risk Management Software? Click here to request for more information.