Regulators are increasing pressure on banks to both better balance risk exposure with profitability targets, and maintain higher capital and liquidity buffers. This will increase operational cost and impact the ability to maintain risk adjusted profitability. Ambit Credit Risk Management can help banks by providing a standardized approach to assess customer creditworthiness, improve transparency and monitor credit portfolios with risk analysis and stress testing. The solution suite is also able to run both regulatory and economic capital calculations side by side to help determine the most efficient use of capital.
âThere is real needs for banks to better identify trends or relationships that are impacting the risk-adjusted profitability of products, customers or operating units.â said Andreas Hug, managing director for SunGardâs Ambit Risk and Performance Management business unit. âAmbit Credit Risk Management helps banks make better informed decisions about credit worthiness at the initial stages of client evaluation, determine the impact of both internal and external factors to the risk around their portfolio, and subsequently determine the risk associated with their lending portfolio to their short and long term profitability.â