As part of an effective credit risk management process, institutions will need to have a systematic approach to measuring, managing, and mitigating credit risk. Risk Solutions leverages the expertise of Standard & Poor's in developing rating criteria, methodologies, and data to help institutions manage credit risk across a wide variety of industry sectors and business lines. Our integrated, customizable, and transparent solutions are designed to support your institution's business needs, as well as respond to the challenges and complexity of regulatory and capital requirements.
Risk Solutions' data, tools, platform, and analytical services can assist your institution in developing internal rating systems, risk management methodologies, validation processes, and support systems. We customize our solutions to meet the business objectives of your institution by addressing all major components of an internal rating system, including assessment and analysis of risk rating parameters such as probability of default, loss given default, exposure at default, and expected loss estimation.
Our Credit Risk Services can help your institution develop, enhance, and validate your credit risk assessment processes, collect and analyze data, and model credit risk. In order to develop competitive credit risk management processes, your institution will need:
A clear and consistent credit risk management process that communicates the quality of the portfolios to third parties such as investors and regulators;
A standard rating scale or credit score that will allow your institution to benchmark the quality of your portfolios against other institutions; and
An effective credit risk measurement for capital optimization.
Related Solutions
Quantitative Models
Commercially available quantitative models for estimating ratings, probability of default, and loss given default.
Credit Risk Data – a comprehensive set of robust and consistent credit loss information; data consortia and management tools.
Standard & Poor’s will evaluate, develop, and enhance your internal rating systems and processes for meaningful differentiation, consistency, replicability, completeness, and integrity.
A comprehensive suite of services encompassing all aspects of validation, including validation diagnosis, framework and process design, as well as review of internal validation procedures.
