Credit risk is one of the most material risks impacting financial institutions in post-crisis world. The major cause of serious banking problems continues to be related to lax credit standards for borrowers and counterparties, lack of attention to portfolio risk management and other circumstances that can lead to a deterioration in the credit standing of a institution's counterparties.
To manage credit risk, institutions should identify, measure, monitor and control credit risk as well as determine that they hold adequate capital against credit risk and that they are adequately pricing for risks incurred.
Asymmetrix Credit Risk Management Software help financial institutions in managing the risk inherent in individual credits transactions as well as the risk inherent in the entire portfolio. Our two-dimensional Corporate Rating Systems help institutions to identify borrower and transactions risks to quantify Probability of Default and Expected Loss Given Default for its exposures to corporate counterparties. Asymmetrix Economic Capital Software implements a Monte Carlo Simulation based Multi-factor Model that allows economic capital estimation and allocation to ensure that the banks is adequately capitalized to absorb tail-risks. Asymmetrix RAROC Module ensures risk-based pricing such that credit transactions are priced to adequately compensate for risks involved.