Credit Expo - and Empirical Credit Risk Management
CreditExpo is a consulting and software company, specialising in the measurement and management of retail credit risk, e.g. instalment lending and mortgages, for management and compliance reporting, IASB, (Europe) and FASB, (USA)
Main services
methodology and software suite
Empirical Credit Risk Management
Designed to:
- Measure and Manage Credit Risk in all instalment lending
- Price and track all loans through their lifecycle
- Inform, prioritize and direct collections
- Track and analyse portfolio performance for mergers and acquisitions
Provide transparency for profitable management throughout the portfolio lifecycle
methodology and software suite
Effective Yield Calculator
Designed to:
Differentiate, track and analyse the mortgage lenders portfolio by
- Interest rate
- Vintage
- Loan to Value
- Underwriter or Credit Score
- Geography
Measure: Loss Forecast, Ongoing Provision Requirements and loan pricing for profitability management.
The key to effective and profitable loan management is accurate and verifiable measurement of credit risk.
CreditExpo has assisted leading banks and credit unions over many years.
Empirical Credit Risk Management (ECM)
This is Credit Expo’s main and most popular product. It is mathematically constructed and actuarially informed to measure and thereby manage the lender’s retail loan portfolio. The current international reporting regulations, IASB 9 and FASB represent a radical shift from the former Incurred Loss Model to the Expected Loss Model, for loss provisioning.
Mortgage profitability
The Effective Yield Calculator (EYC) Analytics is a methodology and software suite for analysing and differentiating the lender’s Mortgage Loan Portfolio into its various constituents, to facilitate measurement and tracking of its segmented income, costs and net profitability. This analysis is required under IFRS 9 for regulatory compliance.
Risk consultancy
Credit Expo’s consulting services straddle four important areas of finance and banking:
- Empirical Credit Risk Management (instalment lending)
- Effective Yield Calculator (EYC) Analytics (Mortgages)
- The Currency Manager, an important treasury service, and
- Feasibility studies for Banks, Building Societies and League of Credit Unions
IFRS 9 Compliance
Introduced in the US in 2020, the Credit Reporting Regulations for retail credit Risk are known as FASB (also CECL). The European Regulations are IASB, introduced in 2018. To avoid regulatory arbitrage, both IASB and FASB have the same requirements and both reference IFRS 9.
Complimentary Consultation
We would be delighted to undertake a complimentary consultation to show you our approach and identify where we can be of assistance to your organisation in reducing credit risk.
