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RiskOrigins™

RiskOrigins incorporates Moody's Analytics industry-leading risk assessment capabilities - including risk-based pricing - and helps lenders demonstrate compliance to regulators.

RiskOrigins™ is an integrated, workflow-driven software platform that allows commercial lenders to streamline and standardize their complete underwriting processes for all commercial loan classes, including commercial and industrial (C&I); corporates; commercial real estate (CRE); and small and medium-sized enterprises (SME).

Success in today’s commercial lending environment depends on attracting new business, making better loan decisions by reducing defaults in your portfolio and underwriting more profitable transactions - not to mention keeping compliant with regulators. Lenders must also manage to these goals and do more with fewer resources and faster turnaround times. Thus, the traditional goal of being more efficient with technology and people becomes even more critical.

OVERVIEW
KEY FEATURES
MODULES

The Solution: A Complete Commercial Loan Origination Software Platform

One Integrated, Flexible System for all Origination Activities

RiskOrigins' flexible architecture, which includes robust security functionality, allows you to centrally manage your risk assessments and makes deploying proprietary internal risk policies easier.

It provides full audit trail functionality and reporting tools from a central Risk Data Warehouse. With RiskOrigins' unique architecture and modular components, you will meet your credit risk assessment goals.

Professional Services, Training and Client Service

Our Professional Services team provides installation consulting, training and custom development for RiskOrigins™ to suit the needs of your institution. Our offerings include end-user and administrator training, customization of financial templates and rating models, integration with internal applications, data migration and localization. Superior client service is one of the most distinguishing characteristics of Moody’s Analytics. Our global support team follows the sun so customers can expect to receive personal attention and access to product experts on a continual basis.

Award Winning Credit Risk Management Analytic Models

RiskOrigins™ works natively with Moody’s Analytics leading credit risk management quantitative models, including RiskCalc™ for evaluating private firm default risk, CreditEdge® for public firm default risk and CMM® (Commercial Mortgage Metrics) for income producing real estate properties. RiskOrigins also supports your custom modeling needs.

Our analytic models can be used on a stand-alone basis or as a benchmark against your internal ratings, further validating your origination and provisioning decisions. Models also serve as early warning indicators, signaling specific risk changes in certain industries or counterparties - in between full rating reviews. RiskOrigins™ will automatically send alerts to the appropriate people in the business line or risk department so they can take action before it is too late.

RiskOrigins™ offers:

Counterparty Management - Reduce the time it takes relationship managers to start the origination process with a new proposal. Easily select or create new customers, define the appropriate loan products and create relevant custom proposals for loan prospects.
Financial Spreading - Eliminate redundant systems and reduce multiple data entry errors. Avoid costly mistakes by ensuring credit analysts are spreading financial statement and qualitative data in a standardized way, based on various accounting standards or specific industries, including commercial real estate.
Financial & Risk Data Warehouse - Gain operational control of your lending policies and have a consistent view of risk across products, risk areas and departments. Be more confident that you’re meeting regulatory requirements around the world using a solution from an award winning vendor. Save time and money by turning around audit requests quickly and easily.
Dual Risk Rating Platform - Bring a new level of accuracy and discipline to your risk management practices and meet regulatory demands by calculating credit risk metrics such as probability of default (PD) and loss given default (LGD) in one place. The result will be higher returns on risk and precise capital allocations.
Risk-Based Pricing - Embed standard pricing calculations and policies into the loan origination workflow and ensure each new deal maximizes shareholder value. With risk-based pricing, you can calculate deal-level Risk Adjusted Return on Capital (RAROC) to ensure only the most profitable loans are issued.
Limits - Improve decision-making and save time by understanding the effect of each new transaction on the overall portfolio - as early in the origination process as possible - and whether each new loan fits within pre-defined limits.
Covenants - Easily define covenants during origination and ensure they are included in the loan documentation. Detect early warning signals and ensure covenants are respected by using an automated tracking process.
Workflow - Improve operational efficiency by standardizing origination and risk management processes, including customer initiation, product proposals, pricing, underwriting, risk rating, credit approvals and portfolio monitoring. Enforce consistent risk management policies and procedures, address regulatory pressure and improve financial performance.
Audit Trail - Achieve transparency and traceability in all your loan decisions, tracking the participants, inputs, outputs and approvals.
Scenario Analysis - Understand the impact of changing market conditions - such as decreases in GDP and unemployment - on portfolios of loans, individual loans and internal rating models.
Reporting - Manage your business more effectively with an easy-to-read dashboard providing portfolio and single obligor-level performance measures. Gain deeper insight into counterparty relationships, including historical transactions and performance. Quickly and easily generate standardized reports such as credit write-ups.
Connections to Back Office Systems - Once a loan is originated, you can send loan data to your loan accounting system or collateral management systems. You can also retrieve data from these systems to monitor activity over the life of a loan.

One Integrated, Flexible System for all Origination Activities

RiskOrigins™ Limits

The RiskOrigins™ Limits module allows clients to assess, monitor and manage global exposure limits across business units, counterparties and time-zones worldwide. The module allows lenders to determine whether new loans fit within pre-defined limits policies at the time of origination and which loans breached pre-defined limits post-origination, allowing clients to enforce risk practices more efficiently.

Features include:

Enterprise-wide calculations of direct and indirect consolidated exposures across banking, insurance and trading books that may incorporate credit risk mitigation techniques
An efficient, flexible, scalable risk framework to implement a wide range of risk policies
A powerful embedded rules engine to set automatic limits and detect alerts, such as an automated notification when a new exposure is booked on a defaulted customer or when a limit is breached
Different types of metrics and exposure profiles (point in time or amortization profiles over time) can be used to estimate exposure and set limits
Reports and the ability to chart business activity over any dimension

RiskOrigins™ Spreading

RiskOrigins™ Spreading standardizes the financial spreading process during commercial loan origination. The
module reduces data entry errors and helps avoid costly mistakes. Our spreading module ensures that credit analysts spread financial statement and qualitative data consistently, based on various accounting standards or specific industries - including commercial real estate CRE - thereby improving operational efficiency. The module also helps firms comply with regulatory guidelines.

RiskOrigins™ Spreading solution enables users to:

Create efficiencies by standardizing the way your firm spreads financial and non-financial data
Minimize data entry errors using one of our industry-compliant financial templates
Standardize the collection of property data with three commercial real estate templates: Income Producing Real Estate (IPRE), Office, Multi-Family, Retail and Industrial Land Development and Home Builder
Set the stage for improved accuracy and consistency of analysis

RiskOrigins™ Scoring

The RiskOrigins™ Scoring module provides a framework for clients to systematically apply and embed their
credit rating policies across all credit decisions, leveraging Moody’s Analytics' world-class analytic capabilities. The module allows firms to build and deploy sophisticated internal rating models within RiskOrigins™ and ensures a consistent dual-risk ratings approach using probability of default (PD) and loss given default (LGD) measures.

RiskOrigins™ Scoring module empowers you to:

Calculate loan loss provisions by estimating PD and LGD measures for each borrower
Produce a borrower grade which can be mapped to an internal PD measure
Build and assign relevant customer-specific internal rating models and improve models over time
Meet internal policies and regulatory requirements
Securely archive data associated with rating decisions at each decision point and easily produce audit reports
Perform detailed analysis at the borrower and portfolio levels
Add pre-defined scorecards to accommodate your portfolio’s diverse asset classes perform detailed analysis at the borrower and portfolio levels
Take advantage of existing internally developed or third-party rating models by bringing them into the RiskOrigins platform