Continuous Credit Risk monitoring, a new paradigm in the age of big data
WESTWOOD, Mass., Feb. 28, 2014 /PRNewswire/ -- RAGE Frameworks, a provider of technology enabled solutions and services, released a white paper on real time Credit Risk monitoring, assessing global events for risk signals round the clock, in addition to automatically generating forward-looking credit ratings based on company financials, as and when they are released.
RAGE deploys a robust, multi-dimensional approach for generating a Real Time Credit Risk signal, a combination of semantic analysis using a unique semantic analysis engine, statistical models, fundamental analysis of companies and the environment they operate in. Given its predictive and forward looking nature, Real Time Intelligence [RTI™] is a powerful 'Early Warning Indicator.'
The RAGE Big Data engine systematically and continuously assesses credit risk of borrowers, customers and third party partners. It processes over a million items every 24 hours and interprets them using a context specific "lens" for each company being monitored. The solution provides real time and 100% tractable predictive intelligence at a company, sector and industry level, factoring in 2nd, 3rd, nth order effects.
The process is forward-looking and combines assessment of qualitative and quantitative data, heuristic judgments, financial performance, historical statistical patterns, and a systematic attempt to calibrate future uncertainty through simulation. RAGE's continuous rating assessment has two components: the base level of credit risk at initiation and continuous adjustments to that assessment.
The example below shows the continuous credit monitoring signal (in blue) generated by RAGE Vs. the mid-point of Sharp Corporation's CDS spread from 10/15/2012 to 04/22/2013.
Read the RAGE White Paper at:
About RAGE Frameworks, Inc.
SOURCE RAGE Frameworks
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