Analytic models spotlight risky loans
SAS enables the MEF to easily monitor fund performance to provide up-to-date reporting.
Improved systemic liquidity and risk management
Italy’s Ministry of Economy and Finance uses advanced analytics on SAS Viya to quickly calculate risk on financial guarantees
As the economy began to falter when the COVID-19 pandemic hit, Italy’s Department of Treasury at the Ministry of Economy and Finance (MEF) needed a quick response.
One of the critical measures it adopted was the extension of state guarantees. These guarantees ensure that a debt to a lender will be paid if the borrower is unable to repay their debt for any reason. As people and businesses struggled financially, the MEF needed to ensure that the government could fund its public programs.
At the onset of the pandemic, the Italian government introduced a set of tools to support the economy, wanting to help ensure the liquidity of small and medium-sized businesses by taking advantage of the opportunities offered by the European Temporary Framework.
The speed of the government response is thanks to an internal project of the Department of Treasury, which used advanced analytics capabilities from SAS to improve risk assessments by refining the methodology MEF uses to estimate risk when issuing public guarantees.
SAS Viya allowed us to constantly monitor the performance of the funds to provide an updated business intelligence report – which was simple and easy to understand with SAS Visual Analytics – necessary for the technical structures of the Treasury during the various phases of the pandemic. Michele Petrocelli Head of the IT Coordination Office, Department of Treasury Ministry of Economy and Finance
Technological innovation enables rapid risk assessments
The MEF and fund managers created a system to constantly monitor guarantees based on the main risk factors associated with them. The agency quickly developed risk models for the main state guarantee funds. This allowed it to monitor the exposures, insolvency risks and the related enforcement risks for the government guarantees, and provided the treasury with risk updates in real time.
Calculating risk as good stewards of public funds
“The risk models made it possible to estimate expected losses by calculating the probability of occurrence of certain events,” says Michele Petrocelli, Head of the IT Coordination Office at the Department of Treasury. “For guarantees, that means assessing and mitigating the risks of insolvency and bankruptcy for the companies receiving funds.”
The models and scenarios are a blend of prevailing macroeconomic trends but also microeconomic events, such as the ever-shifting phases of the pandemic. These scenarios can then go on to assess risks in the future. The models also allow the MEF to accurately assess the effects of enforcement on public finances (i.e., deficit and debt tolerances).
Italy's Ministry of Economy and Finance – Facts & Figures
worth of loans were applied for small to medium-size businesses
of guaranteed debt attributable to the guarantees connected to COVID-19
Up-to-date reporting is a must have
“Using a disaggregated approach by single loan, we were able to obtain very accurate estimates with the possibility of assessing the estimated risk for each sector of economic activity and geographical distribution,” Petrocelli says. “SAS Viya allowed us to constantly monitor the performance of the funds to provide an updated business intelligence report – which was simple and easy to understand with SAS Visual Analytics – necessary for the technical structures of the Treasury during the various phases of the pandemic.”
Building better, less risky future
Short term, the bank’s risk assessment platform will contribute to the management and monitoring of the state guarantee funds. Long term, the objective is to evaluate the more extensive use of the platform. The analysis will be carried out as part of the integrated management of financial and non-financial risks based on international guidelines.
본 문서에 나오는 결과는 본 문서에 설명된 특정 상황, 비즈니스 모델, 데이터 입력 및 컴퓨팅 환경에 적합하게 되어 있습니다. 각 SAS 고객의 경험은 고유한 것으로, 비즈니스 및 기술적 변수에 따라 달라집니다. 따라서 모든 서술은 비전형적인 것이라는 점을 고려해야 합니다. 실제 절약, 결과 및 성능 특성은 개별 고객의 구성 및 조건에 따라 달라질 수 있습니다. SAS는 모든 고객이 비슷한 결과를 달성할 수 있다고 보증하거나 진술하지 않습니다. SAS 제품과 서비스에 대한 유일한 보증은 해당 제품 및 서비스에 대한 서면 계약의 보증서에 명시되어 있습니다. 본 문서의 어떠한 내용도 추가 보증을 구성하는 것으로 해석될 수 없습니다. 고객은 SAS 소프트웨어의 성공적인 구현에 따라 합의된 계약적 교환 또는 프로젝트 성공 요약의 일환으로 성공 사례를 SAS와 공유했습니다. 브랜드 및 제품 명칭은 각 기업의 상표입니다.