Risk Consultancy
ECM Analytics is mathematically constructed and actuarially informed to measure and thereby manage the lender’s retail loan portfolio.
Credit Expo’s primary and most popular product
ECM Analytics is Credit Expo’s primary and most popular product. It is mathematically constructed and actuarially informed to measure and thereby manage the lender’s retail loan portfolio. The new international reporting regulations, IASB 9 and FASB represent a radical shift from the Incurred Loss Model to the Expected Loss Model, for loss provisioning.
Range of Services - including those of sister company Finalysis
Credit Expo’s consulting services straddle four important areas of finance and banking:
- ECM Analytics is Credit Expo’s primary and most popular product. Importantly it meets the new international reporting regulations, IASB 9 and FASB which represent a radical shift from the Incurred Loss Model to the Expected Loss Model, for loss provisioning.
- Empirical Credit Risk Management (ECM) measuring credit risk in retail lending
- Effective Yield Calculator (EYC) Analytics measuring and managing Mortgage profitability – see Services – Mortgage Portfolio Profitability
- Feasibility studies for Banks, Building Societies and for the League of Credit Unions
- The Currency Manager, an important treasury service, delivered more directly by Credit Expo’s sister company, Finalysis, (www.finalysis.ie ) which manages currency and maximises natural hedging within the large corporate’s diverse and volatile commercial arrangements. (Finalysis has over 350 corporate clients)
Benefits
Specifically the Risk Consulting Services provided include:
- Full Dynamic Reviews of credit risk in Banks and Credit Union portfolios and individual sub-portfolios, including risk in the well performing loans.
- Trend Analyses over the full period of the available data, showing more recent and longer term trends.
- Industry Benchmarks in relation to the relevant portfolios, including consumer finance, overdrafts, auto and equipment finance.
- Comparative Analyses of risk and trends across Loan Types, e.g. various Credit Score Bands, Loan Maturities and Business Referral Sources.
- Loss Given Default (LGD) Values, validation and differentiation of LGDs across alternative portfolios and sub-portfolios.
- Account-level Loss Forecasts to direct Collections Priorities and Performance Management.
- Rolling Loss Provision Calculations for Basel III and IFRS compliance reporting.
- Risk Pricing for all loan types and Loan Maturities.
- Dynamic analyses of “Forborne” and Rescheduled Loans.
- “Run Rate” Analysis to distinguish high and accelerating risk arrears.
- Full Portfolio Evaluations for M & A.
Clients, Endorsements and Software Patents
Credit Expos methodology and software have been reviewed and approved by the Central Bank of Ireland and, in the course of its work for clients, by all the main auditors.
Credit Expo’s consulting clients include Bank of Ireland, AIB, Lombard and Ulster, Friends First Finance, GE Money, Premier Banking, Finance Ireland and the League of Credit Unions.
A total of four patents were taken out by Credit Expo, evidencing the innovative quality and value of its R&D.
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.
