Credit Risk

Holistic on-the-fly monitoring and in depth analysis of enterprise wide credit risk exposures.

RiskCubed delivers high performance reporting and exposure monitoring to some of the world’s leading organisations. Available in the cloud or on premise this is the most flexible approach to credit risk management and can be deployed without the need for long drawn out implementation projects.

Credit Risk Cube

Enterprise-wide credit risk management including exposure and limit management, historical trend analysis and exposure mitigation strategies:

 

  • Load the terms and conditions of all counterparty legal agreements including netting agreements and CSAs.
  • Easily integrate transactions from multiple trading and ERP platforms for a holistic view of the business.
  • Manage approvals and credit breaches and different limits (exposure, obligation, PFE).
  • Perform exposure walk-forward analysis, pre-deal checks, what-if and credit and market stress and shock scenarios.
  • Handle multiple credit mitigation strategies such as guarantees, credit insurance policies, letters of credit and pre-payments.

Scoring module

A sophisticated platform for managing counterparty rating models and corporate credit policies:

 

  • Multidimensional scorecards and internal ratings based on peer comparison, time trend analysis and qualitative and quantitative inputs.
  • Automate the import of company ratings and financial statements from external providers, such as: S&P Capital IQ, Dun & Bradstreet, Edgar, Bureau Van Dijk.
  • Include qualitative factors such as the management team, auditors and share structures.
  • Perform financial spreading and historical trend analysis on company performance. 

Collateral margining module

A highly automated collateral management solution for all types of collateral and the daily handling of margin calls.

 

  • Completely automated collateral workflow process with full email integration;
  • Extensive collateral reference data capture including full Credit Support Annex rules;
  • Support for all types of collateral including cash, letters of credit, bonds and other securities;
  • Automatically computes interest on cash held/pledged;
  • Perform what-if analysis for credit downgrade impacts as well as market shock/stress scenario impacts.
  • Dispute resolution and deal reconciliation tools.

Cash Collections Module

A powerful, dynamic view of cash collections performance at all levels. Also available as a stand-alone solution.

 

  • Suite of dashboards to show; portfolio overview, ageing analysis, collections analysis, customer segmentation, intelligent dunning and customer detail drill through.
  • Business process automation – invoice dispute process and automated dunning processes. 
  • Customer Management – manage customer collections reference data
  • Standard invoice loader for linking to ETRM and ERP systems, plug and play for Credit Risk Cube clients

CubeWatch

Sentiment tracking via monitoring of social media and other news sources. By collecting data in real-time we can automatically organise it, filter it, translate it, score it and weight it using extensive language libraries and state-of-the-art techniques in sentiment analysis.

 

  • Anticipate and proactively mitigate the impact of future credit risk events on the portfolio.
  • Model and monitor sentiment in real-time.
  • Latest market and sentiment data from Twitter, new organisations and online blogs.
  • Enter custom scoring criteria and other weighting preferences to further customise your data. Data Sources: Twitter, webhose, Glassdoor, Trustpilot.
  • Analyse live data via powerful, intuitive BI visualisations.
  • Go beyond the data available via financial statements or public rating agencies.
  • Reduce risks inherent in open positions by receiving up-to-date market information.
  • Get valuable insights into market events and geographical or climate related events.
  • Enables timely profit making or loss avoiding decisions.

Potential Future Exposure (PFE) simulation engine

Enables aggregation of PFE calculations to achieve a single PFE figure and jointly model multiple commodities to observe correlations between price changes.

 

  • Simulation of single factor risks and associated forward curves for user defined time periods and number of simulations consistent with the market forward curve, interest rates and single factor parameters.
  • Pricing of standard contracts under single factor model consistent with the simulated risk factors and forward curves.
  • Aggregation of the results across user defined time periods e.g. absolute (dates) and relative (n days, n weekdays, n weeks, n months) horizons.
  • Bucketing by entity, counterparty & netting agreement.
  • Incorporate netting and unpaid settlements into PFE analysis.
  • Conduct more detailed PFE analysis by utilising the following features:
  • Drill down with output in a pivot grid with user defined filtering.
  • Diagnostic information to CSV.

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