12 Aug 2003, Choongo Moonga, Risk magazine
Credient Analytics is a credit analytics component of the Credient service and can be implemented as a stand-alone service. It helps to calculate and aggregate risk exposures across a wide array of asset classes for all derivatives portfolios with the aim of helping to better manage risk across an entire investment banking division.
German banks face strict credit risk regulatory requirements under the standards driven by the emerging Basel II Accord. Such mandates stipulate that banks not only assess credit risk across a wide array of portfolios, but also produce complex credit risk simulations in line with each bank’s level of trading sophistication.
Markus Rumpel, senior vice-president and head of investment banking credit at Commerzbank, said: “Because Commerzbank’s trading activities are very sophisticated, we needed a solution that could measure portfolio effects on potential exposures across many different asset classes in real time. It also had to be robust, reliable and implemented quickly.”