Credit and counterparty exposure accounts for a significant portion of a bank’s risk, and are inherent in any bank’s credit portfolio. Therefore, the need to understand, analyze, evaluate and disseminate information is critical to effective credit risk management.
Surya’s Risk Analysis and Credit Evaluation (RACE) solution helps banks compute probability of default (PD), and map PD to a range of rates to arrive at credit ratings. Surya’s PD model is a non-parametric model based on study of 4,800 companies with 10, 5, 3, 2 and 1 years’ data. Statistical pattern recognition methods have been used to arrive at a purely quantitative PD. In addition, the quantitative PD can be modified using a qualitative model, specific to a bank.

RACE, besides being a PD provider, offers workflow for credit risk workflow management between proposal generators, credit risk officers and management.

features at a glance

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    Multi-dimensional portfolio analysis

    to assess risk concentration

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    Customized solution

    for calculation of risk adjust return on capital (RAROC)

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    Risk Rating and PDs

    Provides risk rating and PDs , adjusted by qualitative assessments, based on financials and financial projections

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    PortFolio PD

    Provides PortFolio PD

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    financial ratios and analysis

    Provides all the necessary financial ratios and analysis in a customized module

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    Allows models definition

    Allows models to be defined by attribute weight, score range, score and credit rating


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    Make informed and consistent credit risk decisions

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    Create workflows, benchmarks and questionnaires for end-to-end evaluation of credit positions

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    Define, create and main models without the need for programming

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    Enhance accuracy of estimating probability of default (PD)

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    Facilitate compliance with regulatory standards such as Basel II

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    Easily integrate with existing systems and upload external data