CREDIT PORTFOLIO MANAGEMENT

Credit portfolio management

Credit portfoliomanagement refers to the process of building a series of investments Gains its value from the interest from issued loans but is susceptible to credit default

Objectives
Identify the key elements of credit risk: probability of default, loss given default and exposure at default Evaluate the inter-action of credit risk within a portfolio exposures (especially default correlation), and how these can be measured and quantified Review how the main drivers of credit risk are modelled and sensitised

Product Details
SAP Bank Analyser:
Credit portfolio data processing tool from SAP Implemented by Duestche Bank

SAP NetWeaver Process Integration:

Maps data elements

Start

Process Flow
Stop

Define the portfolio to be managed

Identify the role and mandate of the CPM function Standardize risks and models Understand economic value versus accounting value

Be transparent in disclosures

Stress Test the Portfolio

Deal with data issues

Yes

Set limits and manage concentrations

No

Start

Technological Implementation
Stop

Define the portfolio to be managed

Identify the role and mandate of the CPM function Standardize risks and models Can be Semiautomatized

Be transparent in disclosures

Can be Fully automatized

Stress Test the Portfolio

Deal with data issues

Understand economic value versus accounting value

Yes

Set limits and manage concentrations

No

Sample Output
Helps credit manager evaluate and administer applications. Information Displayed on screen is governed by rule models.

Advantages of Credit Portfolio Management

Minimized data entry error More data is in-sync

Real time information available

Consistent and informed decision

Advanta ges

Better Relationshi p with customers

Thank You