We focus exclusively on the Moody's Analytics product range. These cover a broad spectrum of banks' risk assessment and management needs.

Credit Assessment and Origination

When originating new business and monitoring your portfolio, it is important to understand the quality of each borrower and the structure of each deal. RiskAnalyst is a platform that allows you to distribute ratings models within your organisation. These models can be models that you have developed or you may choose to use one or more or ours, or a combination.

Data and its management are extremely important for any risk assessment process. In addition to housing the models, RiskAnalyst provides a data capture and management framework supporting robust decision making, year on year. This allows electronic customer files to be archived so that past decisions can be reviewed and the data used for backtesting, monitoring, calibration and rebuilding of the models. Such functionality is essential for regulatory compliance.

Understanding the quality of each customer and deal standalone is a key part of a good risk management framework, but on its own will not guarantee robust performance for your institution. Management of limits is also a critical function in managing your portfolio. With greater regulatory focus, you will no doubt be aware of cases where banks have been fined for failures in this area. Global Exposure Monitoring (GEM) provides a real-time limits management system that allows originators to check authority levels, and division and global limits, before extending credit.

You may want to provide more formalised Workflow support to your credit risk management teams. Our Risk Origins products does just that. It incorporates RiskAnalyst and GEM functionality and builds around them a Workflow framework that can be tailored to your needs.

Portfolio Management

Within our region we are seeing increasing awareness of the importance of understanding how each exposure contributes to the overall risk of the portfolio. Knowing the risk contribution of each exposure will help you better manage concentrations, price for risk and allocate capital throughout the organisation. Our RiskFrontier and DealAnalyzer products are sophisticated tools to support you in this analysis. RiskFrontier allows you to determine the economic capital requirement of your portfolio for a target rating, the impact of each exposure and how different industries and countries contribute to the risk profile of the portfolio. Tools are provided to help you optimise the portfolio, identifying exposures that contribute risk without providing commensurate reward. To allow rapid and accurate assessment at origination, DealAnalyzer is a tool that allows the impact and pricing of a new commitment to be quickly ascertained.

Stress testing has gained prominence and RiskFrontier allows you to stress test your portfolio by adjusting key risk drivers and modelling the impact on your portfolio. In addition Scenario Analyser is a tool currently under development that is being designed to facilitate flexible bottom-up stress testing of models implemented within RiskAnalyst.

Regulatory and Compliance

Implementation of a Basel framework is not a trivial matter. We provide the Fermat CAD tool that has been voted number one by readers of Risk Magazine. This produce provides significant flexibility and support for calculations. It is designed to allow you to go back to calculations performed in the past assisting you with regulatory challenges, and it will support multiple calculations using different standards and local discretions.

Fermat CAD links to Fermat RRT, a regulatory reporting tool that won the same award from Risk Magazine in 2009.

Basel III, while building on Basel II is set to change and challenge many banks. Moody’s Analytics are currently working on a solution that we believe will prove as successful as Fermat CAD designed for Basel III.

For firms operating in the insurance market, we can provide Fermat Solvency II, an end-to-end Solvency II regulatory solution to manage insurance risk.

Balance Sheet Management

Balance Sheet Management is becoming increasing important, especially with Basel III. We provide three main tools in this area:

Fermat ALM supports monitoring of balance-sheet risks and covers a wide range of financial products. It helps you evaluate risk-return trade-offs using both static and dynamic simulations and to comply with regulatory requirements.

Fermat IAS helps institutions comply with IAS 39 including financial instrument management and hedge accounting rules.

Liquidity risk has been a focus of Basel III; Fermat Liquidity Risk consolidates, calculates, tests and reports your organisation’s liquidity position. It incorporates robust stress testing and comprehensive regulatory and management reporting.