Wholesale Credit Risk Rating Solution

Wholesale Credit Risk Rating Solution is an online credit application tool, to consolidate the origination and adjudication processes of large credits mainly comprising CSB (Corporate, Sovereigns and Banks) and large credits of SME borrowers. The credit approval process includes origination, generation of risk rating score, underwriting and adjudication. This system stores borrower and facility information. For different risk rating methodologies, risk is quantified in a consistent way as per the Bank's credit risk policy.

Business Challenges That You Face

Today, Banks want to enhance the existing wholesale credit processing systems with additional features such as,

• Comply with Basel II business requirements.
• Make the risk rating process transparent and replicable.
• Document the methodology.
• Separately track overrides for analysis.
• Assign Borrower rating on an ongoing basis for each borrower/Guarantor.
• Monitor abnormalities in risk ratings.
• Generate reports on risk rating migrations.
• Include unique functionalities like relating to connected and related accounts, subsidiaries, cross border transactions and syndication details.

Apart from the above functional challenge, the existing application systems are lacking in following technical points,

• The application source code is hardly compliant to industries J2EE standards and architecture.
• Absence of modular based programming coupled with a complex architecture and poor coding standard resulting in a difficult to maintain system.
• Significant dent in end user confidence due to the stability of the application and more number of production defects.
• Significant cost complicating the budget woes.

What We Offer You

Kumaran can deliver a comprehensive application which could satisfy all the business and technology challenges listed above. The application complies with basel II standards. The risk rating process is transparent and replicable. Methodology is well documented with little room for ambiguity. A special feature of Wholesale Banking solution (CSB risk rating) is that it has a variety of Financial Statement Templates (FST) to support the analysis requirements for various industries. Financial statement information should be entered using the appropriate (FST). Where applicable, FSTs are aligned with the applicable Risk Rating Methodologies to ensure financial ratio information can be driven directly into the obligor assessment process.

These risk rating methodologies can be implemented in most banks to allow their risk managers to objectively as well as subjectively assess a corporate customer's strengths and weaknesses based on the industry.

Assessment of an obligor requires that an obligor be viewed from different angles and perspectives so that the risk underwriters and managers are able to form an unbiased and objective view about the obligor's risk.

Banks credit risk policy is a fine blend of subjective and objective risk appetite statements that are adequately captured by this Risk rating application.

The Credit Process seamlessly integrates with the other risk assessment modules to produce credit risk proposal based on a bank's own format. This process of proposal generation with obligor's financial and non-financial data allows any bank to produce uniform, accurate and reliable proposals at high speeds, largely eliminating the knowledge and skills levels of professionals involved at the risk initiation stage. Thus, decision makers are always presented with consistent risk proposals with uniform analysis and accurate data and their comparisons. This helps in faster and better credit decisions making.

Benefits of Wholesale Credit Risk Rating Solution

• Automates Credit Origination, risk rating and credit adjudication process.
• Complies with Basel II business requirements.
• Helps improve Return on Capital (ROC) for banks.
• Provides early warning reports.
• Increased granularity in the capture of collateral information.
• Increased transparency and replication capability.
• Makes use of the latest technology and designs and takes advantage to minimize cost of development of the service.