Assessing credit risk has become more complex for financial institutions when developing a wide range of credit products for different types of clientele. Credit risk depends heavily on the product and the targeted client base, especially for financial institutions offering specific loans to Small and Medium-sized Enterprises (SMEs).
Client-risk scoring tools help make the risk assessment process more reliable and efficient. They can be used at different stages of the analysis process.
We design and implement risk-scoring tools tailored to the specific needs of the financial institutions and to the target clienteles.
Qualify credit applications according to their scores: "Good", "Fair", or “Rejected"
Our credit risk-scoring tools are based on a broad set of criteria; weighted scores for each criterion are added together to obtain an overall credit risk score.
At the first stages of the credit appraisal, it enables credit officers to identify focuses for their analysis and thus improve its effectiveness.
Once the credit officer has completed the credit application analysis, he or she can apply the tool, based on a full range of preset criteria, including appraisal criteria, in order to get an overview of the risk on the credit application. The credit officer can thus check the credibility of the application before presenting it to the credit committee. The latter, in turn, could base its decision on this general view of the credit risk on the application.
Our credit risk-scoring tools are not intended to replace the credit officer’s analysis of the credit application, but to be complementary.