Credit Risk Rating System (CRMS)

Complexity Made Simple

E2E Solution for your Corporate and Commercial Credit Needs

CRMS Features and Benefits

CRMS was specifically designed to enhance and streamline the overall credit process by simplifying the client selection process through the use of Target Market / Risk acceptance Criteria, provide cash-flow centric financial analysis capabilities, reduce credit application turn-around time through the effective use of dynamic work-flow processing and tracking, and provide both obligor (ORR) and portfolio (PRR) specific risk ratings and returns (RAROC and RORAC).

In addition, CRM delivers unparalleled Basel and IFRS 9 compliant portfolio reports. CRMS is an easy-to-use user-friendly web or in-house server-based application which can be fully integrated into existing core banking system.

• Forward Looking
• Centralized Economic and Industrial Assessments
• Portfolio Management
• Easy screen access
• Flexible Navigation and Admin
• Multi-lingual
• Automated Credit Processing
• Captures SMEs
• Share of Wallet Recommendations
• Industrial Peer Analysis
• Creation and Management of Product Programs

Credit Risk Rating Modules:

This module captures all of the obligor’s core data, including legal structure, portfolio segment, group data, addresses, industry, ownership, management, products and services, suppliers, customers, group etc.
The cash-flow centric Financial Analysis is compatible with 'overrides' given the Target Market Risk Adjusted Criteria, as well as the ESG rating of an Obligor.

Automatic, Comprehensive & Complete credit process to help focus the analysis and justify the ORR of the client. The Credit Administration provides a summarized list of terms and conditions for each credit, along with an audit trail to monitor status and efficiency at all times. The Workflow provides flexible workflow management of a credit application with multiple processing levels after the credit officer level, along with multiple dimension criteria.

Single database enables true End-to-End (STP) processing from on-boarding to funds disbursement and repayment receipt.
With detailed and highly customizable facility structuring and collateral management input screens, the EMM module simplifies and standardizes the data process.
Integrated link with Facilities function enables proper Facilities Risk Rating and individual Obligor Portfolio Risk Rating.

TEM is a module to manage, document and evaluate exposures that stretch beyond 12 months. These include Project Finance, Contractor Finance, Real Estate and all other stand-alone cash flow financings. TEM produces Consolidated Cash Flow, Balance Sheet and Income Statement, as well as allows users to sensitize the cash flows to assess worse case scenarios.

The IFRS 9 module is unique in providing flexibility in the calculation of Expected Credit Losses with features such as: Calculation of ECLs on the Obligor and the Facility level, PD Calculations, Flexible import preferences using APIs, etc.
This module is an essential tool for any financial institutions which is in accordance with Basel guidelines.

The PRR module was designed to assess the risk rating of a particular portfolio, to measure its Expected Loss and develop the strategies needed to preserve capital adequacy and meet Basel’s Guidelines. It combines the results of the obligor and facility ratings, along with facility data into a comprehensive and complete report.
The Stress Testing component was designed for stress testing a portfolio and helps forecast the amount of capital needed to cover infrequent but high impact events.

The PD Calculator module allows the user to calculate the Probability of Default per Risk Rating range for a set portfolio. To do so, the module uses the same data used in the PRR and Stress Testing module, and the output can be use in the Loss Norm table. The latter is where estimates of Expected Loss and Unexpected Loss are measured in line with the Basel and IFRS 9 guidelines.

Dashboards

Multiple Dashboards each providing exceptional reporting capabilities with an unprecedented insight into the Licensee’s portfolio, covering:
1. Executive
2. Relationship Management
3. Risk Management
4. Operations
5. Documentation
6. Portfolio Limits
7. IFRS 9
8. Administration.

Valuation of Companies

The Valuation module on the CRMS allows the User to analyze a company’s value through Discounted Cash Flow (DCF) and Multiples analysis. Through unique WACC calculations and Cashflow inputs from additional modules, 6 Sigma Group provides the User with the most extensive due diligence. Additional analysis techniques, such as Peer Analysis are used to assist in the valuation analysis.