Our OneSumX Credit Risk solution provides single name and portfolio credit risk analysis by means of three components: current and future exposures, expected and unexpected credit loss based on stress and credit value-at-risk analysis, and credit value adjustments.
Credit and counterparty risk – the risk of financial loss due to an unexpected deterioration of counterparty credit quality – has doubtless been brought into sharp focus over recent years, but it has also played a significant role in the majority of financial crises prior to this time.
This on-going need to have accurate measurement of credit losses and efficient management of credit exposure is a foundation stone for firms; moreover, credit value adjustment became a key analysis element for deﬁning the impact of credit and counterparty risk in value, liquidity and credit losses. It goes a step ahead beyond the default / non-default to the downgrading analysis. Such adjustments are based on the integration of future exposures, together with the risk-free market assumptions, credit spreads, and credit losses considering however the markets’ views against counterparty risk.
The unfavorable dependency of the exposure with specific counterparties’ credit quality or general market risk factors, known as wrong way risk, plays also significant role in credit exposure and counterparty risk analysis.
Therefore it is essential that they are equipped with a complete gamut of tools and techniques to achieve the above.
Our OneSumX Credit Risk solution’s counterparty structure allows users to drill-down to individual exposures and counterparties of an organization. The full legal structure can be implemented with distinction between branches and legally independent subsidiaries. Subsidiaries can be consolidated based on the percentage ownership. Additionally, flexible analysis by country is available.
Risk mitigation techniques
Credit line analysis
Financial product/Instrument coverage
Integrated market and credit risk analysis