Credit Risk Analysis Using Spotfire Analytics

Some sectors within financial services, esp. insurance, escaped the worst of the financial crisis that hit banking from 2007-09 – But was it merely a chance?
  • Do you really understand how each product in your portfolio affects your capital levels?
  • What about correlations between risk drivers affecting your business? 
  • What are your top five risk drivers? 
  • Do you get daily reports on how your portfolio is affected by material risk drivers?

Why should you care about credit risk analysis?

  • Credit risk is often the biggest risk faced by a banking institution
  • Credit risk affects a wide range of portfolios, including loans, fixed-income investments, OTC derivatives, securitizations, and other structured products 
  • Credit risk is usually a precursor to liquidity risk, which is a proximate cause for many a bank failure

The business benefits of Spotfire Analytics in credit risk analysis

  1. Gain insights into the risks affecting your loan portfolios
  2. Achieve greater transparency into risk factors affecting the loan book 
  3. Align all stakeholders in their understanding of the true risks to all portfolios affected by credit risk 
  4. Implement complex workflows and models in an intuitive and full-featured platform that supports complex statistical analysis and data visualization 
  5. Empower the analyst to ask relevant what-if questions and get answers promptly

Related Demos

  • See how Spotfire can make the process of understanding credit risk faster and easier.
  • Analyze out-of-sample performance metrics for portfolios that have been constructed with constraints involving monhs of history, target return, minimum asset weight, maximum asset weight.
  • Model economic capital based on two risk factors; market risk and mortality risk
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Spotfire's interactive information visualization and analytic solutions give users a remarkable experience for quickly and easily querying data and reporting results for superior business intelligence. From portfolio management and customer retention programs to key processes such as CRM, marketing, research, bioinformatics, yield and asset management and design for manufacturing, enterprises around the world rely on Spotfire's business analytics software to improve operational performance.

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