Credit Benchmark and Oliver Wyman Launch IRB Nexus to Help Banks Improve Model Performance聽and Calibration
Credit Benchmark and Oliver Wyman have launched IRB Nexus, a credit analytics solution designed to help banks improve their internal ratings-based (IRB) models for low- and no-default portfolios. The solution aggregates over 10 million risk estimates annually from more than 40 major banks worldwide, helping financial institutions validate their IRB models and meet regulatory requirements. IRB Nexus addresses the challenge of assessing risk for portfolios lacking historical data, potentially helping banks avoid increased capital reserve requirements that could limit lending capacity.
Credit Benchmark e Oliver Wyman hanno lanciato IRB Nexus, una soluzione di analisi del credito progettata per aiutare le banche a migliorare i loro modelli basati su rating interni (IRB) per portafogli con basso o nessun default. La soluzione aggrega oltre 10 milioni di stime di rischio annuali provenienti da oltre 40 banche di rilevanza mondiale, aiutando le istituzioni finanziarie a convalidare i loro modelli IRB e a soddisfare i requisiti normativi. IRB Nexus affronta la sfida della valutazione del rischio per i portafogli privi di dati storici, aiutando potenzialmente le banche a evitare un aumento dei requisiti di riserva di capitale che potrebbe limitare la capacit脿 di prestito.
Credit Benchmark y Oliver Wyman han lanzado IRB Nexus, una soluci贸n de an谩lisis de cr茅dito dise帽ada para ayudar a los bancos a mejorar sus modelos de calificaci贸n internos (IRB) para carteras con bajo o ning煤n default. La soluci贸n agrega m谩s de 10 millones de estimaciones de riesgo anuales de m谩s de 40 grandes bancos en todo el mundo, ayudando a las instituciones financieras a validar sus modelos IRB y cumplir con los requisitos regulatorios. IRB Nexus aborda el desaf铆o de evaluar el riesgo para carteras que carecen de datos hist贸ricos, ayudando potencialmente a los bancos a evitar un aumento en los requisitos de reservas de capital que podr铆an limitar su capacidad de pr茅stamo.
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Credit Benchmark et Oliver Wyman ont lanc茅 IRB Nexus, une solution d'analyse de cr茅dit con莽ue pour aider les banques 脿 am茅liorer leurs mod猫les internes bas茅s sur les notations (IRB) pour les portefeuilles 脿 faible ou sans d茅faut. La solution agr猫ge plus de 10 millions d'estimations de risque par an provenant de plus de 40 grandes banques 脿 travers le monde, aidant ainsi les institutions financi猫res 脿 valider leurs mod猫les IRB et 脿 r茅pondre aux exigences r茅glementaires. IRB Nexus s'attaque au d茅fi d'茅valuer le risque pour des portefeuilles manquant de donn茅es historiques, aidant potentiellement les banques 脿 茅viter une augmentation des exigences en mati猫re de r茅serves de capital qui pourrait limiter leur capacit茅 de pr锚t.
Credit Benchmark und Oliver Wyman haben IRB Nexus eingef眉hrt, eine L枚sung f眉r Kreditanalysen, die Banken dabei helfen soll, ihre internen Ratingsysteme (IRB) f眉r Portfolios mit wenig oder keinem Default zu verbessern. Die L枚sung aggregiert j盲hrlich 眉ber 10 Millionen Risikosch盲tzungen von mehr als 40 gro脽en Banken weltweit und unterst眉tzt Finanzinstitute bei der Validierung ihrer IRB-Modelle und der Einhaltung regulatorischer Anforderungen. IRB Nexus stellt sich der Herausforderung, Risiken f眉r Portfolios ohne historische Daten zu bewerten, und kann Banken helfen, erh枚hte Kapitalreserverforderungen zu vermeiden, die die Kreditvergabe beeintr盲chtigen k枚nnten.
- Solution aggregates data from 40+ major banks worldwide
- Helps banks avoid potential capital reserve increases
- Addresses regulatory compliance challenges
- Provides validation for low-default portfolio risk assessment
- None.
Insights
The launch of IRB Nexus represents a significant advancement in bank risk management capabilities, particularly for challenging low-default portfolios. By aggregating over 10 million risk estimates annually from 40+ major banks, this solution addresses a critical gap in regulatory compliance and capital efficiency.
The platform's impact on capital requirements is particularly noteworthy. Banks can potentially avoid unnecessary capital reserve increases by better validating their IRB models, directly affecting their lending capacity and competitive position. This is especially important for portfolios involving alternative investment funds and non-bank financial institutions that often face heightened regulatory scrutiny.
The collaboration between Credit Benchmark and Oliver Wyman brings together extensive data resources with sophisticated modeling capabilities, potentially reducing regulatory compliance costs while optimizing capital allocation strategies. For financial institutions, this could translate to improved risk assessment accuracy and more efficient use of capital reserves.
As banks adapt their IRB models to meet evolving global regulatory standards, many struggle to assess risk for low-default portfolios that lack extensive historical data. These portfolios, which may include funds, including alternative investment funds, and non-bank financial institutions are frequently monitored by global regulators due to their potential systemic impact. Without sufficient validation for these models, banks risk facing demands to increase capital reserves鈥攁 measure that can restrict lending capacity and hinder competitive positioning.
IRB Nexus helps banks to address these challenges by aggregating more than 10 million risk estimates annually from over 40 of the world鈥檚 largest banks. Leveraging Credit Benchmark鈥檚 extensive dataset, IRB Nexus offers banks comprehensive benchmarking analytics for validating their own IRB models, allowing them to operate with greater confidence.
鈥淚RB Nexus has the potential to be transformative for banks looking to significantly bolster their historical credit analytics data feeding their capital models,鈥� said Cem Dedeaga, Partner at Oliver Wyman. 鈥淲ith Credit Benchmark鈥檚 aggregated data, we鈥檙e empowering risk officers with the insights needed to meet regulatory expectations while sustaining their lending potential.鈥�
Michael Crumpler, CEO of Credit Benchmark, added, 鈥淲e鈥檙e proud to bring our extensive dataset to IRB Nexus. By equipping financial institutions with critical data on low-default exposures, this collaboration enhances risk modeling for portfolios that traditionally lack sufficient information, fostering transparency and reliability in commercial credit assessments.鈥�
Supported by a structured implementation process customized to each client鈥檚 portfolio, IRB Nexus easily integrates with the client鈥檚 IRB models.
For more information on IRB Nexus please visit or to schedule a consultation, please contact cem.dedeaga@oliverwyman.com. To learn more about Credit Benchmark, please visit or contact joe.proctor@creditbenchmark.com.
About Credit Benchmark
Founded in 2015, is a leading provider of credit risk data and analytics. The company aggregates and anonymizes contributed risk data from over 40 global financial institutions, producing unique obligor-level Credit Consensus Ratings and other key credit metrics. Covering more than 110,000 legal entities鈥�
About Oliver Wyman
, a business of (NYSE: MMC), is a management consulting firm combining deep industry knowledge with specialized expertise to help clients optimize their business, improve operations and accelerate performance. Marsh McLennan is a global leader in risk, strategy and people, advising clients in 130 countries across four businesses: , , and . With annual revenue of
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Laura Saville, Credit Benchmark Marketing
info@creditbenchmark.com
+44 (0) 20 7099 4322
Patricia Romero, Marsh McLennan
patricia.romero@mmc.com
+44 (0) 7825 193311
Source: Credit Benchmark
FAQ
What is IRB Nexus and what does it do for banks?
How many risk estimates does IRB Nexus analyze annually?
What problem does IRB Nexus solve for financial institutions?
