Leading the Way Ahead in Credit Risk Management

CRISIL is recognized as a Category Leader in Credit Risk Management Solutions by Chartis Research

Credit risk management is evolving at a rapid pace, driven by shifts in market dynamics, tighter regulatory scrutiny, and heightened competition for high-quality credit. In this landscape, investments in advanced risk technology are becoming a key differentiator for leading corporate lenders, enabling them to accelerate revenue growth while effectively mitigating risk.

Corporate credit pricing in focus

Banks are under continued focus to optimize their corporate credit pricing strategies. With numerous lenders vying for a share of the market, banks must ensure that their risk-adjusted pricing is accurate and competitive, to retain existing customers and attract new ones. This requires a deep understanding of the borrower's creditworthiness, as well as the ability to accurately assess and price credit risk. Banks that fail to get their pricing right risk losing customers to more competitive lenders, which can have a significant impact on their bottom line.

Banks are turning to risk management products and analytics solutions to help them optimize their credit pricing. These solutions provide advanced analytics and modelling capabilities that enable banks to accurately assess and price risk, ensuring that their pricing is both competitive and profitable. By leveraging these solutions, banks can gain a better understanding of their customers' credit profiles, identify potential risks, and adjust their pricing accordingly.

Integration of ESG and Climate Risk Factors

Banks are increasingly integrating environmental, social, and governance (ESG) considerations and climate risk factors into their credit risk assessment. This requires a flexible platform that can easily update and adapt to evolving ESG methodologies and climate risk assessment frameworks.

To achieve this, banks require a platform that can host ESG and climate risk models and analytics, providing a single source of truth for risk assessment and decision-making. This integration is critical for banks to make informed lending and pricing decisions. The platform should facilitate seamless integration and updates of ESG and climate risk models, ensuring banks remain agile and informed.

Revolutionizing Credit Risk Assessment with GenAI

The adoption of GenAI-ready platforms by banks is transforming the way they approach credit risk assessment, financial spreading, and portfolio monitoring. Additionally, GenAI-ready platforms can automate the financial spreading process, streamlining the analysis of complex financial data and freeing up human analysts to focus on higher-value tasks. Furthermore, the ability to monitor early warning signals in real-time using GenAI-powered analytics allows banks to quickly identify potential issues and take proactive measures to mitigate risk.

How does CRISIL provide value in the realm of credit risk management?

Our deep domain expertise combined with proven credit risk credentials enable us to provide innovative solutions to help banks and financial institutions in lending and credit risk management. Our comprehensive suite of products empowers institutions to manage credit risk proactively, enable informed decision-making, and accelerate business value. We invest in state-of-the-art technology and domain expertise to stay at the forefront of the industry. Our suite of award-winning products include:

1. Credit+ ICON: The platform streamlines credit risk assessment and credit rating framework through a combination of objective and subjective methodologies, enabling decision-making by lenders. Powered by deep domain expertise, AI capabilities, and extensive customizability, it serves 40+ global clients across 15 countries and is India's largest deployed internal risk rating solution. Credit+ ICON is built using cutting-edge technology and SaaS-ready architecture to enable a secure, scalable, and highly configurable solution.
2. Credit+ Early Warning Signals: The solution helps financial institutions actively monitor the quality of their credit portfolio and lower loan-loss contingencies. It leverages internal and external data, rule-based flags, and multi-dimensional trigger libraries to detect changes in credit quality and provide risk managers with actionable insights and the ability to track corrective action plans.
3. Credit+ Loan Origination: This enables clients to seamlessly manage and automate their origination process and incorporate credit decisioning parameters including internal rating, ESG, climate risk, and covenants.
4. Credit+ Pricing Engine: Helps bank’s relationship managers identify mis-priced transactions, relationships, and products.

In addition to the product suite, CRISIL also offers solutions across credit risk consulting and machine-learning-based data analytics solutions.

Beyond our words

Our industry-leading Credit+ solutions have been instrumental in helping banks boost profitability, streamline operations, and effectively manage credit risk. Recognized as ‘Category Leaders’ in credit risk management and lending operations by Chartis Research , our solutions have garnered high praise. Here’s what their analyst has to say about our products:

Mitigating and managing credit risk is a critical challenge for most financial institutions, and CRISIL's category leader position in our quadrant reflects its core strength in credit risk management across the trading book. - Sidhartha Dash , Chief Researcher at Chartis Reseach.

CRISIL's AI-enabled solutions are empowering businesses to manage risk more efficiently. With a focus on continuous innovation and customer satisfaction, our tools are delivering significant value.

Our Credit+ ICON and Credit+ Early Warning Signals have been instrumental in providing AI-enabled advanced analytics and driving efficiency. We are particularly proud of the excellent client feedback we have received for our solutions. We're constantly exploring new ways to enhance customer value and are investing in domain and cutting-edge technology to stay ahead of the curve. - Arunkumar Iyer , Senior Director - Risk Solutions, CRISIL Market Intelligence & Analytics

Get in touch to discover how CRISIL can assist your institution in overcoming credit risk management challenges and drive business value.

Visit our website or email us at [email protected]

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