RISKROBOT: Credit Risk Model Automation

by SPIN Analytics

Financial institutions can now digitize credit risk modelling to achieve 10x acceleration

The post-covid "new normal" has broken the models Banks use to understand credit risk: economies, markets, businesses and consumers all behave very differently than they did when the models were built. Banks need to rebuild hundreds of models, but, with each model taking up to 9 months, a much faster and more efficient solution is urgently needed. 

However, automation alone is not enough - generic machine learning tools looking for statistical patterns in historical data just speed-up the process of getting the wrong answer

RISKROBOT™ by SPIN Analytics is a new approach which uses Artificial Intelligence (AI) to combine Expert Judgement with classical risk modelling and Machine Learning (ML) techniques on Big Data, to produce accurate predictive analytics for making credit decisions and managing risk. RISKROBOT™ supports all types of credit risk models (decisioning, BIII/BIV RWA, IFRS9/CECL, stress testing) for all types of retail, commercial and corporate products and portfolios. It is encoded with all current Credit Risk Regulation and decades of experience so that human experts are augmented - not replaced.

Key Benefits

With RISKROBOT™, financial institutions can now:

  • Rapidly respond to market changes combining classical credit modelling and expert judgement with AI.  
  • Reduce by 10x the total time to build, update or replace models.
  • Shorten from months to minutes the time taken for complex tasks like credit data preparation and model documentation.  
  • Use credit risk experts more efficiently on analysis and applying judgement by automating routine tasks.

RISKROBOT™ key technological components will help you:

  • Manage, organize and understand your data by creating an efficient, high-performance Credit Risk Data Warehouse which maximizes credit insights.
  • Keep your model up to date via sound statistical techniques and matching current regulations. 
  • Orchestrate assumptions & analytical techniques across all models so credit risk is consistently calculated and explainable across the portfolio.
  • Automate the generation of regulatory documents including audit and reports.

Click on ‘Get it Now’ to let Microsoft Azure simplify and accelerate a Proof of Concept so your teams can explore the benefits of RISKROBOT™. After a PoC, Microsoft Azure can streamline the integration of our ground-breaking analytics into your infrastructure, and provide a cost-effective, highly scalable environment which meets the highest standards of data security.

At a glance