1. Data Collection, Review and Augmentation
Our team facilitates the data collection process by creating tools and clarifying text. We scrub your data and supplement missing information with data drawn from our extensive industry default databases.
- Our experts combine their individual experience as industry practitioners with Moody’s work at more than 100 financial institutions to identify patterns, outliers and errors in the data.
2. Expert Modeling Workshop
We team with experts and decision makers within your firm to identify priority risk factors and build a common understanding of your approach to risk, portfolio composition, challenges, and risk tolerance.
- Our experts share perspective on your existing risk management structure and offer feedback on the benefits and considerations of various risk management approaches.
- Our objectives are to develop an understanding of your institution’s risk infrastructure and establish consensus regarding priorities.
3. Statistical Analysis
Our team of Ph. D statisticians and analysts employ single and multivariate analyses to isolate the best predictors of default. A Qualitative Factor Performance Assessment determines the qualitative factors that best predict default.
- Our proven models, statistical expertise, sophisticated analytical techniques and consultants’ experience provide you with actionable recommendations that optimizes your risk approach.
4. Risk Modeling and Scorecard Development
We review the results of our analysis with you and use our discussions to develop model factor weights, cut-off ranges and scorecards tailored to your needs and portfolio.
- Our customized scorecards are built off our library of hundreds of risk models and scorecard templates.
- Our methodology creates a customized solution by blending objective criteria with relevant factors and the needs of your organization.
5. Validation & Calibration
Our analysts test, validate and calibrate models to ensure accuracy and validity as a decision making tool.
- Our validation techniques maximize your financial and risk performance by improving the effectiveness of risk based pricing and ensuring efficient use of capital.
- Our continuous scorecard maintenance, validation and calibration services assist with regulatory compliance and methodically check the effectiveness of your risk management system.
6. Documentation & Knowledge Transfer
Our team builds validation procedure manuals, developmental evidence, and user guides to support regulatory and knowledge transfer needs. We also offer customized training sessions to develop the risk management capabilities of your staff.
- Comprehensive documentation and knowledge transfer activities increases the transparency and effectiveness of your risk strategies.
- Our team includes former regulators and consultants that understand the requirements for communicating your risk management strategies to external and internal constituencies.
- Our team of professional instructors develop and deliver knowledge transfer programs for all levels of your organization.