Step Inside RiskCalc™ with Virtual Reality

Credit risk modeling combines data with higher dimensional mathematics to understand the impact of various risk drivers. Using modern visualization techniques, this video shows how the RiskCalc model combines liquidity, profitability and leverage to determine default risk and how measured default risk captures actual default rates.

How Does RiskCalc Evaluate Credit Risk?

More leverage implies more credit risk, and more profit implies less credit risk. What about more leverage and more profit?

This video uses a combination of virtual reality and animation to convey five dimensions:

  • Profitability, leverage and liquidity represented as back/front, left/right and up/down
  • Risk represented with color (blue/red) and the outcome as shape (sphere/cube)

After watching these videos, we hope you will gain a better understanding of how a credit risk model works. Explore our video series below to understand the full story:

  • Learn from the Map and the Globe
  • The Story of Credit Analyst Captain Ahab
  • Why Are Defaulted Firms Different?
  • How Does RiskCalc Evaluate Credit Risk?
  • What's Next?

If you liked these videos, would like to see more of them, more information on RiskCalc, or information on other Moody’s Analytics models, please let us know.

Join the Private Firm Credit Risk Group on LinkedIn today.