CreditWiz+

The Regulators in many countries have issued notifications in the recent past on the subject of Basel II and Credit Risk. These requirements are based on the recommendations of the Bank of International Settlements (BIS). Our software, CreditWiz+, will enable the Banks to comprehensively meet these statutory requirements and achieve Advanced Internal Rating Based System (AIRB) compliance.

CreditWiz+, is a credit evaluation model for evaluating a wide spectrum of credits from SMEs to large companies. The software was developed by bankers with a collective experience of over 100 years in international banking at very senior levels. CreditWiz+ can provide:

  1. Risk ratings based on the counterparty's financial statements, market standing, industry prospects, etc.;
  2. Estimates of default probabilities over a five/six year horizon;
  3. Loss estimates for specific transactions based on the empirical data provided by the user;
  4. Risk Adjusted Return on Capital (RAROC) calculations based on the credit rating;
  5. Estimates of charge to capital/corpus that may become necessary in case the counterparty defaults;
  6. Access to any ODBC compliant database to provide MIS as required by the user;
  7. Monitoring of user–specified portfolio concentrations and portfolio management based on data provided by the user;
  8. Outputs of reports, etc., in user required formats.


To demonstrate how CreditWiz+ generates the outputs, we have prepared a PowerPoint presentation using the Indian subsidiary of Asea Brown Boveri (ABB) as an example. To view this presentation, click here.

CreditWiz+ can also be used to assess/estimate the likely impact on the capital given the risk profile of the portfolio. The Risk Rating methodology and the supporting empirical data can assist in establishing Investment Policy guidelines and Target Risk Acceptance Criteria (TRAC). In conjunction with a public database, the user can generate a target market list. Thus, the software can also be used as a marketing tool.

CreditWiz+ has been fine-tuned for global applications and has no geographical limitations. We have kept in mind the ground reality that the Generally Accepted Accounting Principles are not as rigorously complied with in certain regions and the disclosure levels often times leave much to be desired. CreditWiz+ is a diagnostic designed by bankers and is an aid that can give probabilities of default with a fairly high level of accuracy. It uses elements of artificial intelligence to do this. It goes behind balance sheet figures. The credit may not have defaulted as of now, but if the operations are not healthy, CreditWiz+ will point that out. There are many examples, both domestic and international, that can be quoted to illustrate this (see Citations for details).

 

Provides Valuable Inputs

Quick Credit Decisions...

Leads to a Happy Clientele