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.
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