For the preparation of risk analyses and reports, extensive manual work is necessary in many institutions.
In CRE, the processing chain is fully automated. No manual intervention is required from the source systems to the report.
The production of analyses is fast and cheap. The risk management team is freed from clerical work and can work on content.
The result of the simulation is not only the value at risk. A comprehensive cockpit of risk and return ratios is returned.
You determine the levels of analysis yourself. Break down the portfolio into segments according to any criteria. CRE calculates the key figures for each segment.
In this way, you directly look at the business, the customer, the borrower unit, the sales unit, the industry, the product group, the country and the overall bank portfolio.
Globalisation is part of the banking business, as are country risks.
With CRE, you see country risks not only as an upper limit for the rating, but as a cluster risk. The situation of a country affects all clients assigned there simultaneously.
You see the consequences of international crises before they arise.
What is the composition of your portfolio and what data do you have?
Choose the models for portfolio and recoveries so that high-quality input data is available and the structure of the portfolio is hit.
CRE includes CreditMetrics, CreditRisk+ and generalisations of both.
In addition, there are models that represent a maturing of the portfolio, so that given portfolios can be valued up to final maturity.
Recovery models can also be freely selected.
Define shocks, crises or changes in the environment.
CRE automatically evaluates scenario analyses on a daily basis. When you come to the bank, you will find the reports ready.
Evaluate your current portfolio with all scenario analyses on a daily basis.
In this way, histories are formed over time that show you how the portfolio is developing and how your measures are working.
Can this large new transaction be concluded? How will it affect the portfolio and the risk-bearing capacity?
With CRE you make new deal simulations at the push of a button and are already sure in sales that new large trades will not be a surprise.
Do you have to calculate special stress tests for the supervisory authorities and show the effect of portfolio restructuring?
With CRE you define your future portfolio at trade level according to user-defined criteria. Clearly laid out in tabular form.
You receive the same result types as for your current portfolio and can make the transition visible.