Credit Risk Management
Credit Risk Management
Contents Purpose ......................................................................................................................................................... 3 Data ............................................................................................................................................................... 3 Analysis ......................................................................................................................................................... 4 Conclusion ..................................................................................................................................................... 5
Purpose The purpose of the Credit Risk Management demo is to illustrate how QlikView can be used by a financial institution to manage credit risk. By providing a unified picture to the entire business, QlikView helps everyone have the same, up to date, picture of their risk exposure instead of disparate spreadsheets floating around the business. Credit Risk data is also interesting to the entire Business, not only the Credit Analysts. Are we pricing the products correctly? Are we in compliance with regulations? Should we continue to do business in a specific market or geographic segment? These are all questions that could be asked against Credit Risk data.
Data The data in this application is a snapshot of a point in time. The application is also set up so you can download both the application and the underlying data to be able to plug in your own data to the app to discover on your own how your Credit Risk data would look like in QlikView.
Analysis Below is some of the analysis that can be performed in the Credit Risk Management demo by sheet: Concentration Analysis – This sheet gives you the ability to identify exposure concentration over industries and sectors. Quickly drill down and identify problems areas and produce your own Top 5/10 report over the metric you are interested in. Correlation Analysis – A free form way to explore correlations in the data. With the ability to change the metrics in the chart as well as the dimension the users have total freedom to explore their data to uncover previously unknown correlations. Just remember – Correlation does not equal causation. PD Analysis – The Strip Plot chart plots every customer in their respective PD Grade. With the possibility to change metric the user can explore clusters and patterns in their data. This chart will always display the full data set, selecting anything will “brush” the data points so the selected data points will turn green while the data not included in the selection stays in the chart but are colored grey to provide context. Comparison – Allows the user to compare different sets of the data and answer question like what would happened if we stopped doing business in the Professional Services sector in EMEA and how would that impact our top level goals? Capital Allocation – This sheet allows you to model potential increases and decreases in capital allocation rates. Can we free up and capital across our business or how would a new regulation affect different areas of the business? Ad-hoc – Allows the user to quickly gain access to the lowest level of granularity in the data and create their own report that they can take action on.
Conclusion The Credit Risk Management demo allows every part of the business to gain insight into their credit risk data without losing out on centrally defined metrics and goals. The wide variety of use cases allows the business to approach the data from the user’s point of view and answer questions that crosses functional boundaries internally within the business.
Contents Purpose ......................................................................................................................................................... 3 Data ............................................................................................................................................................... 3 Analysis ......................................................................................................................................................... 4 Conclusion ..................................................................................................................................................... 5
Purpose The purpose of the Credit Risk Management demo is to illustrate how QlikView can be used by a financial institution to manage credit risk. By providing a unified picture to the entire business, QlikView helps everyone have the same, up to date, picture of their risk exposure instead of disparate spreadsheets floating around the business. Credit Risk data is also interesting to the entire Business, not only the Credit Analysts. Are we pricing the products correctly? Are we in compliance with regulations? Should we continue to do business in a specific market or geographic segment? These are all questions that could be asked against Credit Risk data.
Data The data in this application is a snapshot of a point in time. The application is also set up so you can download both the application and the underlying data to be able to plug in your own data to the app to discover on your own how your Credit Risk data would look like in QlikView.
Analysis Below is some of the analysis that can be performed in the Credit Risk Management demo by sheet: Concentration Analysis – This sheet gives you the ability to identify exposure concentration over industries and sectors. Quickly drill down and identify problems areas and produce your own Top 5/10 report over the metric you are interested in. Correlation Analysis – A free form way to explore correlations in the data. With the ability to change the metrics in the chart as well as the dimension the users have total freedom to explore their data to uncover previously unknown correlations. Just remember – Correlation does not equal causation. PD Analysis – The Strip Plot chart plots every customer in their respective PD Grade. With the possibility to change metric the user can explore clusters and patterns in their data. This chart will always display the full data set, selecting anything will “brush” the data points so the selected data points will turn green while the data not included in the selection stays in the chart but are colored grey to provide context. Comparison – Allows the user to compare different sets of the data and answer question like what would happened if we stopped doing business in the Professional Services sector in EMEA and how would that impact our top level goals? Capital Allocation – This sheet allows you to model potential increases and decreases in capital allocation rates. Can we free up and capital across our business or how would a new regulation affect different areas of the business? Ad-hoc – Allows the user to quickly gain access to the lowest level of granularity in the data and create their own report that they can take action on.
Conclusion The Credit Risk Management demo allows every part of the business to gain insight into their credit risk data without losing out on centrally defined metrics and goals. The wide variety of use cases allows the business to approach the data from the user’s point of view and answer questions that crosses functional boundaries internally within the business.
