Measure Private Firm Credit Risk Accurately, Efficiently, and Consistently

Risk managers at banks, asset management firms, insurance companies, and corporations often feel the pressure to quantify private firm credit risk. This pressure comes from shareholders seeking to minimize potential losses and maximize their return on capital, and regulators requiring adequate capital levels. To manage end-to-end credit risk effectively, existing processes in underwriting loans, monitoring counterparty risk, setting loss reserves, and benchmarking exposures and investment may need to be reassessed. A critical part of this process is adopting an accurate and consistent default and recovery framework for private firm portfolios. 

Moody's Analytics RiskCalc™ solution offers a comprehensive approach to assessing the default and recovery of private firms. RiskCalc models generate forward-looking probability of default (PD) or EDF™ (Expected Default Frequency), loss given default (LGD), and expected loss (EL) credit measures for assessing private firms. There are over 30 region- and industry-specific models that cover most of the world's GDP.