Advanced credit portfolio risk calculation platform

4 June 2018

Audit is forcing more and more banks to improve their credit risk management. Established credit portfolio models more often miss requirements and fail in covering the specific risk profile of the bank’s business model. zeb added reference content to the wide-spread calculation modelling platform of zeb.control, that covers credit risk portfolio measures, flexible model-based amendments, and enhancements for all sizes of banks in the market.

Challenges for banks

Banks’ risk management is target of lots of requirements since years. Steering risks based on those requirements needs software support nowadays to be able to handle big amounts of data and to document methods in an audit-proof way. Risk data aggregation (i. e. BSBC239/RDARR) forces institutes to industrialize their (risk) data processing with their software and systems.
All banks have to specialize their risk manangement methods to align them to their business model’s risk profile and thus reflect their unique selling point in the market. All banks are affected by this regulatory trend.

Focus on the business model’s risk profile

To align the risk model to the bank’s risks profile bears a couple of challenges. Creating a completely new individual credit risk portfolio model is a tough project at high risk and high effort. Whereas buying a standard software reduces this risk and minimizes the effort, but often lacks of individual adaptability. To bridge the gap zeb offers a flexible, modular and integratable state-of-the-art credit risk portfolio model with the application zeb.control.risk - Credit. While using an out-of-the-box standard, any changes can be made to address individual needs without losing updateability of the zeb.control standard. Thus, simplifications and specific enhancements can be realized instantly. If you need support in finding the best model for you, zeb will be available with more than 15 years of experience in credit risk modeling.

Modelling credit portfolio measures

zeb.control contains a modelling platform, which is used throughout the product family to model content and measures from a business perspective. Technical issues (database mapping, logging, error handling etc.) are hidden from the user's business view and generated automatically, but can be shown and changed by advanced technical staff, if required.
This modelling platform allows credit risk departments to kick-off a new risk engine by
•using reference content by zeb,
•referencing third party libraries,
•and modelling risk measures by themselves.

Risk engines can be improved in a sandbox approach by the business department in a very agile way and be transferred to production systems in compliance with IT governance with only a few clicks.
Experienced zeb teams will help you migrating your legacy credit risk engine to this new infrastructure standard in risk management. Your self-empowered business team has the risk engine under control – with zeb.control.

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