deen

Risk Analyzer

Automated monthly credit assessment

New solutions for new challenge

Risk assessments are subject to increased requirements: They must be available at all times, and they must depict recent developments adequately. RSU’s Risk Analyzer helps you meet these demands. Using capital market data and balance sheet information, the tool provides a monthly, automated credit assessment of more than 30,000 listed companies and financial institutions worldwide, as well as of defined peer groups. In sum, a highly versatile tool for many different needs.

Applications

As a stand-alone tool,

… Risk Analyzer is a valuable number cruncher for clients with limited analytic capabilities, and an effective helper in transaction decisions for which you don’t want to hire expert support.

As an addition to existing risk assessments,

… Risk Analyzer can be used for market monitoring purposes (e.g., visualizing industries and sectors) or, with new business, for the initial valuation of companiesn.

In portfolio management,

… generates time series, permitting precise statements on the development of companies’ credit standing. With the results, it is possible to determine asset correlations and to parameterize customer-specific (credit) portfolio models. The time series are also used for modeling in the context of stress testing.

Assessing outlooks and business models

Default probabilities are determined based on Merton’s Theory on Rational Option Pricing (1974).
According to that theory, a company is insolvent when its value falls below the sum of its liabilities. In addition to liabilities, Risk Analyzer takes into account the company’s market capitalization and share price and, on this basis, determines its one-year probability of default (PD according to Merton). In other words, the balance sheet view – which is retrospective – is replaced by a forward-looking one: The valuation reflects how the market perceives the company’s future prospects and business model, and thus its creditworthiness.

The tool offers a multitude of functions:

Use interactive charts to look at a given PD’s historical development as well as underlying values and input variables

Analyze individual companies’ PD in relation to regional, industry-specific, and individually defined comparison groups

Vary input variables to determine alternative PD scenarios

Draw up watch lists with individual, case-specific warning thresholds, making sure you will receive notifications whenever the risk situation changes significantly

Use the extensive options for data export and graphical representation to conduct further analyses and use output data in reporting

Risk Analyzer is web-based

Easy and quick to implement, the tool is available in German and English. Depending on your specific needs, Risk Analyzer can be used as a stand-alone assessment tool or as a complement to existing risk systems.

RISK ANALYZER

Other helpful tools:

Loss estimation

As credit default typically concerns only a part of the amount owed, professional risk assessment always includes an estimation of losses. We have just the right toolkit to cover all risk components.

Read more

Risk Guard

Daily risk scores help you predict significant changes in credit standing. The tool issues alerts automatically, enabling you to take quick action.

Read more

Questions? We’ll be happy to answer them.
Write to info@rsu.one or call +49.(0)89.442340-0