CreditManager

Providing institutions sophisticated risk and economic capital management capabilities

Total quality assurance of the investment process

CreditManager enables better compliance, control and improved asset allocation among clients who use our service. Some benefits of the CreditManager application and service are:

• Measure portfolio credit risk, identify excessive risk concentrations across any set of dimensions and poorly performing exposures, and manage economic capital
• Consolidate and compare risk and opportunities across the entire credit business as well as individual business lines, portfolio managers, obligors, regions, industry sectors, exposures, and any other user defined criteria
• Stress the drivers of a portfolio's credit risk, such as probabilities of default, correlations, spreads and recovery rates to understand and better address their capital requirements
• Customize output across the various dimensions of their portfolio, both in absolute terms and relative to benchmarks using CreditManager's reporting framework. Reports templates include: Expected Returns, Marginal/Incremental Risk, Risk vs Return Analysis, Credit Value at Risk (credit VaR) and Risk Based Capital Allocation.
• Communicate positions, opportunities, risks and limits — across businesses, between risk takers and risk monitors, using RiskMetrics’s cutting edge speed and distribution capabilities
• Perform cost-benefit analysis on proposed hedging programs
• Investigate the least expensive means of reducing credit exposure on selected names
• Comply with Basel II economic capital, as well as with the new IRC requirements for measuring credit risk in the trading book

• • Flexibility is Key
    • We are open to mapping obligors to any client specified market factors such oil prices, GDP, equity prices etc. The use of factors with observable prices to directly calculate correlations means that the analytics are not subject to model risk. In addition, CreditMetrics can be applied transparently to private firms, and obligors mapped to any market factors clients see as related to their portfolio’s performance..
• • Market Risk Engine Integration
    • RiskMetrics Group can integrate market and credit risk calculations, compare and combine the two, and calculate the incremental risk contribution resulting from migration and defaults for both trading and investment environment.
• • Hit the Ground Running
    • RiskMetrics Group and the CreditManager team of experts can implement our solution fast and get clients running on day 1; then make improvements and tailor the system to your practice, creating a high degree of customization. Integration with augmentive systems, like RiskManager and Portfolio Pilot, is also a snap with our team of experts.

The speed and flexibility of our CreditManager application service is critical to our clients, and mission-critical in this current market environment.