Along with our business partners, we have established in the region a team of credit risk experts capable of providing an end-to-end credit risk framework to banks of all size, both conventional and Islamic. Our Credit risk solutions comprises of four modules designed to cover the following functions:
AFS Credit Risk Solution
- Corporate Spreading & Credit Portfolio Analysis
- Credit Workflow Management
- Risk Rating & Default Statistics
- Regulatory & Economic Capital Reporting
AFS Credit Risk solution is a comprehensive credit risk management solution, delivering benefits for both credit and risk officers, as well as for front line relationship managers. The solution provides commercial bankers with vital financial analysis/spreading, obligor rating, business modeling capabilities, and communication tools to build, manage, and sustain a profitable commercial lending operation.
AFS Credit Risk solution has been uniquely designed to cater for all forms of commercial lending, including commercial real estate. The solution can simultaneously improve a bank’s commercial lending results, enhance the bank’s clients’ business performance, cement customer retention and powerfully differentiate the bank from its competitors.
AFS Portfolio Analyzer
AFS Portfolio Analyzer provides Banks with the ability to analyze and monitor the credit risk of the entire portfolio – or one or more sub-portfolios – while applying stress testing and scenario modeling techniques to identify deteriorating credit.
Powerful charts and graphics identify loan concentrations –at geography, industry or loan type levels, whilst drills down features are used for individual customer analysis. Watch lists and custom reports can be tailored to ensure transparency of all deteriorating credits, and those requiring remediation are identified. User defined stress tests can be applied to ‘shock model’ a portfolio, and observe the shifts in key credit quality, and risk ratings. It can be used for credit management or data mining for marketing purposes and for feeds into allowance calculations and provisioning (ALLL).
AFS Portfolio Analyzer can be integrated with the Bank’s core systems, internal risk-rating system or AFS Credit Risk Solution.
AFS Credit Process Management
AFS Credit Process Management covers credit related processes for both Corporate and Retail business and has a fully integrated workflow, business process management, collateral management, recovery & provisioning process as well as a document management engine.
Banks can effectively manage the lending process cycle and bring together the competing interests of risk management, credit officers and lending managers though joining up disparate processes and automating the movement of essential tasks both within and outside of the bank. The full management of all credit application (right up to funds release), collateral and recovery processes is enabled. ACP manages credit requests and risk-related information for more consistent and better informed decision making and Bank wide credit process optimization. It ensures full adherence with bank lending policies and procedures as well as compliance with Basel II Pillar 2 in terms of controlling risk management processes.
Bank credit processes are often highly manual, prone to error and operational risk, and require input from many different stakeholders. Through automating key processes, the solution speeds up loan application and processing without sacrificing the quality of business decision-making. Overall, the solution customers benefit from increased competitiveness, efficiency savings, lower operational risks and losses, as well as higher business volumes thanks to a more compelling customer value proposition.
Advanced Risk Analytics
Managing Credit risk remains a key factor in profitability of banks with commercial lending portfolio. Market practices including regulatory frameworks suggest that no bank with larger lending portfolio can survive without strong and advanced risk management practices in the long term.
ARA provides Banks the functionality to develop internal scorecards using quantitative methods (regression algorithms) and allows for calculation of default statistics (PD, LGD & EAD). ARA offers a list of pre-defined models with fully scalable settings requiring business users to have only a working knowledge of statistical techniques. All functionality is enabled via drop-down menus in a user-friendly interface.
ARA also provides for complete data management, analysis management, validation, back-testing and sophisticated stress testing capabilities based on external drivers. The solution provides great flexibility allowing for customization and incorporation of user-defined or external models. ARA can be fully integrated with the loan origination process, rating process as well as regulatory and economic capital calculation.