Peldec Decision Systems

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		Overview
		White papers
		Risk Rating
		Basel II

Developing and Implementing Basel II-compliant Internal Rating Systems
Financial institutions realize that at the heart of the implementation of the Foundation IRB or the Advanced IRB Basel II approaches is the need to develop and deploy an effective internal rating system.

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on Peldec's risk rating solutions

The system should designate a Probability of Default (PD) for each customer, and be able to evaluate the Loss Given Default (LGD) and Exposure At Default (EAD) for each credit facility.

Achieving a high quality rating system requires a financial institution to capture enough relevant information about its customers and then submit it in the appropriate format to the model that translates the information into a risk rating.

End-to-End Internal Rating Systems Development, Deployment and Management

Peldec Decision Systems helps financial institutions in the development, the implementation and the management of an internal rating system that addresses the Basel II credit risk-related requirements.

Peldec's risk consultants assist financial institutions:

	Identify which sources of information about customers are currently available, both internally and externally.
	Quantify just how effective this information is in rating the customers.
	Develop an internal rating model that uses the available information.
	Design, develop, implement and integrate the software that is needed in order to deploy the rating model.
	Validate and fine-tune the rating model over time using various statistical methodologies.
	Recommend additional sources of information that can enhance the rating.
	Enhance the model to accept additional sources of information as they become available.

A Proven Methodology that Leverages the Financial Institution's Customer Data

Peldec Decision Systems implements a proven risk rating methodology that enables banks to generate a statistically-viable rating model using any one of the following types of customer-related information:

	Financial ratios that are calculated from customers' financial statements.
	Customer demographics such as the relative size of a customer or the year that it was established.
	Judgmental scores assigned by the financial institution's relationship managers and analysts.
	Credit bureau scores and reports.
	Information about customers' principals and affiliates.
	Analysis of the behavior of your customers' banking activities.
	Information about specific industry segments.
	Macro-economic indicators that affect some or all customers.

About Peldec Decision Systems' Risk Rating Consultancy Services

Peldec Decision Systems' consultancy services address the needs of Peldec Decision Systems' customers for professional credit risk consulting, with an emphasis on customer risk rating systems and methodologies.

Peldec uses numerous methodologies for quantifying risk and for validating rating models statistically. The methodologies combine mainstream risk rating approaches with proprietary risk analysis techniques.