DECIDE Credit Risk
DECIDE RISK is your reliable early warning system when risks unexpectedly concentrate. The system also takes into account factors such as the development of different counterparty and issuer credit metrics. You manage the risk profile within this framework without having to restrict your trading activities in any way.
DECIDE RISK’s modular building block system minimizes the effort needed to compile risk aggregations and limits. Exposures from various sources can be recorded and aggregated using different accounting approaches.
DECIDE RISK provides an information base which enables you to make the right decisions at an early stage to secure essential competitive advantages.
Options for sound management of risk profiles
- Company-wide management of credit risk in realtime
The realtime presentation of company-wide credit risks and exposures in an aggregated view enables you to make the necessary decisions at an early stage and to initiate required actions in a timely manner.
- Manage limits actively
Respond directly to limit violations and identify risk concentrations in time with the corresponding time profile of the expected limit utilization. Actively manage these profiles by initiating the necessary actions.
- Regulatory requirements – always up to date
DECIDE RISK is continuously adapted to regulatory requirements, e.g., MiFID II, BCBS 239, FFRTB, SA-CRR.
Identify risks early and reliably
Clear display of credit risks
DECIDE RISK bundles all credit risks with issuers, counterparties, and depositaries and allows you to immediately identify where essential actions are necessary. Depending on the individual case, exposures to counterparty and replacement risks arising from OTC transactions are composed of a basket of credit type calculations, which may include market value, book value, profit & loss, VaR, CVaR (Gordy), and expected shortfalls.
Consistent handling of credit risks
The address risk process is carried out by DECIDE RISK in accordance with CRR/CRD IV. Risk-weighted assets are calculated using the KSA and IRB approach. By reviewing funds in accordance with Cash Reserve Requirement Ratio/the German Large Loans Directive, you can monitor large loan exposure limits in realtime and account for them in the regulatory reporting system.
Ensure transparency in depth
Drill-downs of arbitrary granularity ensure transparency at all levels. If necessary, risk contributions can be broken down to the transaction level.
Selectively manage liquidity
By using LCR/NFSR aggregation and predictions assuming specific scenarios, you ensure that your liquidity management is on a very solid footing.
The Benefits of DECIDE Credit Risk
- Company-wide and timely management of limits
Central intraday management and control of limits as well as their ongoing usage based on wide-ranging views, reports, and analyses (pre-deal checks, limit reservation for expected/outstanding transactions, etc.).
- Active analysis/control of market and credit limits
Multi-dimensional scenario analyses enable you to test and outline various impacts of counterparty and trading venue strategies as well as general security asset class risks and instrument risks.
- Always keep track of processes
Credit risks with the optional inclusion of all transactions and positions with credit risk elements support their active management and allow institution-specific process design.
- Company-wide credit risk reporting
Company-wide credit risk across various business units can always be determined in realtime and presented in a clear and comprehensible manner.