Our products and services on this topic are organized in three categories: (i) risk quantification for retail lending, (ii) risk quantification for corporate lending and (iii) model validation.

The New Basel Capital Accord offers challenges and rewards to banks worldwide. Even the most sophisticated financial institutions will be required to re-evaluate and document their credit processes as never before, particularly banks seeking to implement the Foundation and Advanced Internal Rating Based (IRB) approaches. The latter approach requires significantly increased data capture and retention procedures. Banks are required to estimate internally the risk components (PD, LGD and EAD) and to have at least five years worth of history to allow validation and calibration of resultant models.

Implementation of the New Basel Accord will reward financial institutions with far greater security and tighter controls, as well as provide new levels of confidence for directors and shareholders.For the estimation of the risk components for retail lending there are minimum requirements on the data available and the way segmentation is performed.