Risk-Based Pricing Methodologies

Comprehensive Solutions, Proven Methodologies and Data

We work with you to develop robust and profitable risk-based pricing strategies as part of your credit risk decision-making and portfolio management processes to ensure you are compensated for risk.

Price for Your Risk

Our solution is derived from the experience of implementing valuation and credit portfolio modeling frameworks at institutions of all sizes around the world, from creating a basic pricing matrix approach to implementing real-time pricing tools using economic capital methodologies. Our team can support you in developing processes and methodologies that consider funding costs, credit spreads based on a state-of-the-art economic capital framework, administrative costs, and qualitative business considerations.

OUR APPROACH
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Our team of experienced consultants will work closely with you to build pricing frameworks are designed for your organization to align with your individual business structure and strategy.

Our approach follows four steps:

Review and analysis of guidelines and pricing framework, portfolio structure, and exposure levels.
Development of recommendations based on the existing pricing framework and review with experts and decision makers in your organization.
Framework design and modeling of risk-based pricing methodologies in line with your guiding principles and business strategy.
Documentation and knowledge transfer of approaches and implementation, including workshops and training sessions.

The Moody’s Analytics Difference

Comprehensive Solutions

A multidisciplinary and integrated view of risk management across the value chain creates solutions customized to your needs – from data architecture through advanced portfolio optimization – to enable improved decision making.

Proven Methodologies and Data

Leading edge tools, robust and validated models, transparent frameworks and the industry’s most comprehensive proprietary credit risk data set drive immediate results.

Unparalleled Expertise and Thought Leadership

Professionals with practical experience as former analysts, practitioners and regulators – backed by more than 30 years of credit risk data and a century of risk assessment – provide independent evaluations and insights that reflect a true understanding of your business.