CareEdge | Risk Solutions

Overview

Over the past decade, business intelligence has been revolutionized and now from the traditional visualization, it has transformed to insightful data visualizations. We, at CARE Risk Solutions have developed an indigenous platform which helps customer to make data driven decisions based on facts or information collected.
It helps the client's to automate their processes and mitigate their risk by:

Providing better insights about the customer behaviour, customer sentiments and due diligence checks to ease their internal process.
Evaluating current risk & predict unseen risks on the borrower's portfolio.
Providing valuable insights and detailed analysis about the trend & pattern in the historical data. Process Automation & Recommending the changes required in process.

Analytical Breakdown

Credit Risk

Helps to predict probability of default using predictive risk analytics

Within Basel capital regulation, financial institutions are required to estimates of probability of default, which is one of the key parameters that determines capital requirements. Inbuilt ensembled & deep learning models in the platforms are applied on the huge volume of customer data which the helps the bank to predict the categorical outcome for borrower's probability of loan default.

Simulate various scenarios to predict loan default

With use of machine learning models and availability of huge volume of data has helped the financial institutions to do scenarios analysis and simulate cases where they can estimate the expected change in borrower’s paying capabilities assuming specific changes in the values in key risk indicators (KRI) which provides insight into a customer’s risk position. KRI may include indicators such as current asset ratio, sentiment scores, statement of account, financial statement, credit score, etc.

Monitor & identify limit breach probability

Platform allows financial institutions to monitor credit limits at both client and portfolio levels from their activation through their entire lifecycle. With use of latest machine learning classification models & regression models, we help financial institutions to proactively analyze and monitors the limits across business segments and predict the possibility of limit breach.

Helps to monitor collateral portfolio in a pro-active manner

Valuations are relatively straightforward yet still involved exercises when similar collaterals in terms of hedonic variables transacted in the market close to the valuation date. Our platform has inbuilt multivariate component models for valuation analysis which enables the financial institutions to monitor & forecast its collateral value, starting from the credit initiation at proposal stage all the way through valuation, loan to value (LTV) and disposal in the event of default.

Key Benefits

1
Inbuilt completely configurable Rating & Scoring Engine. Configurable Rating Workflow
2
Comprehensive Collateeral Management. Supports Concentration Analysis & Risk Based Pricing.
3
Extensive Limit Management, Utilization Analysis & Violation Reports.

4
Computation of Risk Adjusted Return on Capital (RAROC). Stress Testing & Model Validation
5
Calculation of Risk components such as PD, LGD, EAD, Expected Loss, Unexpected Loss, CVaR, Etc.
6
Comprehensive solution compatible with all three approaches i.e. Standardized, F-IRB & A-IRB