CS Risk Management System

Security. Reliability. Functionality.

CS Risk Management System is a peripheral information system for analysis, evaluation and classification of risk exposures, and for estimation of the size of the necessary credit risk provisions.

Technical characteristics

  • All system modules are fully integrated and based on Microsoft® Windows graphical interface.
  • A standard SQL Server – MS SQL Server 2005/2008, is used as a database.
  • From a technological point of view, CS Risk Management System is built on a multi-tier, customer/server architecture.
  • The system allows for the operation of customer applications in various language environments.

Access administration

CS Risk Management System offers an opportunity for user access administration by:

  • Differentiating rights of access to modules, data and functions of the system.
  • Defining types of standard users, related to the standardization of rights depending on the occupied position (administrator, manager, other).
  • Registration of users with standard and individual rights.
  • Saving an audit trace of each user action within the system (log in/ log off, editing, performance of procedures).

Provision formation process

CS Risk Management System allows complete organization and management of the calculation process of necessary credit risk provisions. Most important stages in the process of determining the necessary provisions are:

Import of input data

The system is able to work simultaneously with various input systems. From each of them, current information on the following is periodically imported:

  • Risk exposures: contract terms – permitted size, disbursement and repayment periods, limits, type and size of interest rates, information about the credit product, etc.; debt servicing quality; elements forming the exposure’s gross balance value.
  • Customers: type, financial standing, identification data, etc.
  • Collateral – type, total amount, specific characteristics, used size for risk coverage by exposures.

Methods and Parameters

CS Risk Management System includes an option for estimation of necessary provisions by different methods: based on the national regulator’s requirements and a method corresponding to the particular credit institution’s internal rules.

Within each method, various conditions and approaches can be applied, differentiated by:

  • Types of risk exposures – credits, letters of credit, guarantees.
  • Risk exposure portfolios – Retail, Wholesale, etc.

Each method allows the use of adjustable conditions, such as:

  • Regrouping and classification of input data into separate system groups;
  • Setting of different levels of debt servicing quality.

The system’s flexibility and options to test various models are due to capabilities for:

  • Definition of various basis exposure categories and setting the size of the provisions necessary for them by describing conditions based on: exposure type, portfolio, debt servicing quality and size, product, type and size of collaterals, type and credit rating of the client.
  • Application of various algorithms for calculation of the acknowledged size of acceptable collaterals and calculation of the exposure’s risk value.

Technical characteristics

  • All system modules are fully integrated and based on Microsoft® Windows graphical interface.
  • A standard SQL Server – MS SQL Server 2005/2008, is used as a database.
  • From a technological point of view, CS Risk Management System is built on a multi-tier, customer/server architecture.
  • The system allows for the operation of customer applications in various language environments.

 

Access administration

CS Risk Management System offers an opportunity for user access administration by:

  • Differentiating rights of access to modules, data and functions of the system.
  • Defining types of standard users, related to the standardization of rights depending on the occupied position (administrator, manager, other).
  • Registration of users with standard and individual rights.
  • Saving an audit trace of each user action within the system (log in/ log off, editing, performance of procedures).

CS Risk Management System features a built-in mechanism for the management of the entire process of establishing individual estimations of risk exposures and customers – estimation, confirmation, review.

Performance of multiple iterations

The process of applying a selected provisioning method to the input data from a single period can be repeated multiple times. The input and output data for each started iteration is saved and identified with a unique number.

The result of the process of formation of provisions is an evaluation of the risk for each exposure separately, in a different equivalent (the exposure’s currency, national currency, European currency).

The system allows study and analysis of the influence of each factor on the result, by changing parameters and/or input data.

Approval of results and export

Of all test scenarios and variants, one is selected, which has to be set as final for the current period. Its results are considered official and can be exported to the corresponding external system.

Queries

The result of each provisioning is illustrated with the help of a vast range of queries.

They can be both summarized – as tables and graphs, or individual – exposure’s files.

Each query has a set of parameters which describe its span – portfolio, system group, rating/ category, status.

Each of the queries is based on a result of a selected iteration or illustrates the difference between two iterations.

Queries and reports can be created in different formats: Report Manager (Crystal Reports), Microsoft® Office Excel, Text files, Microsoft® Office Word, RTF, Adobe® Reader, PDF.