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In the credit risk measurement and management space there are many tools which aim to address: - Default probability (PD)
- Rating estimation
- Loss Given Default (LGD) or Recovery
- Correlations in portfolios and securitizations
- Portfolio analytics, economic capital, return on risk capital
- Credit work flow
- Data collection
- Credit education
For best practices and regulatory reasons these tools must be made specific to asset classes such as:
- Retail (consumer) exposures
- Small business
- Middle market
- Corporate (wholesale) counterparties
The solutions must also be specific to counterparty industries, including:
- Banks
- Insurance companies
- Asset managers
- Brokerages
- Hedge funds
- Energy traders
- Industrial firms
- Sovereign entities including municipals
- Corporate real estate
- Consumer real estate
Solutions in this space often call for a combination of art and science, which effectively means a combination of statistical and expert judgment approaches. Return to Top
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Credit Tools & Solutions 
