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| BP - Credit Risk with Monte Carlo | |
| Companies carry credit risk when, for example, they do not demand up-front cash payment for products or services. By delivering the product or service first and billing the customer later - if it's a business customer the terms may be quoted as net 30 - the company is carrying a risk between the delivery and payment. Significant resources and sophisticated programs are used to analyze and manage risk. Some companies run a credit risk department whose job is to assess the financial health of their customers, and extend credit (or not) accordingly. They may use in house programs to advise on avoiding, reducing and transferring risk. They also use third party provided intelligence. Most lenders employ their own models (Credit Scorecards) to rank potential and existing customers according to risk, and then apply appropriate strategies. With products such as unsecured personal loans or mortgages, lenders charge a higher price for higher risk customers and vice versa. With revolving products such as credit cards and overdrafts, risk is controlled through careful setting of credit limits. Some products also require security, most commonly in the form of property. Our team directed implementation of product based future pricing & modelling tool requirements using Monte Carlo risk calculation toolset and managed the identification of the stakeholders, project sponsor and IT senior supplier. Ensured the business objectives/requirements were well documented and the scope was in line with available budget, time and resources and supervised communication channels from requirement providers, all the way to the third party suppliers who were responsible for delivery of the products. Quality assured for every phase, from requirement gathering to software deployment. Directed testing phases, ensured BRD and FRD documentation adhered to BP standards. | 4Contact us To discuss how we can help your organization to achieve rewarding business solution with maximum efficiency Call us at (+44) 01202 862 640 or send us an eMail.
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