PortfolioView™: Proactively Measure Inherent Core Exposure

PortfolioView™ is the only system that focuses exclusively on the problem of measuring the inherent core exposure risk prospectively rather than the traditional approach of retroactively estimating losses.

Using information embedded in the institution's portfolio and archived in the RiskWarehouse™, PortfolioView™ is designed to accurately forecast developing losses while simultaneously measuring the volatility of potential losses.

PortfolioView™ employs a consistent unified approach for measuring commercial and retail losses across segments of the institution's exposure portfolio. Thus, PortfolioView™ can analyze the entire banking book, or selected segments, without sampling. PortfolioView™ is exclusively dependent on internal data--such as account balances, charge-offs, and recoveries--and does not require any external market or vendor data source.

Core Benefits

Estimating Losses and Volatility
Accurately estimating future expected losses inherent in a portfolio and appropriately provisioning for these losses in the form of the Allowance for Loan & Lease Losses (ALLL) is an imperative for reliable financial reporting.

The volatility in losses as measured by unexpected losses provides an accurate basis for allocating risk capital, a cushion against extreme loss. PortfolioView™ can accurately determine the economic capital necessary to support the risk exposure assumed by the firm's investment.

Additional Benefits

With an accurate projection of potential losses and associated volatility, institutions can optimally manage each sector from an overall corporate perspective--enabling management to focus on developing opportunities or mitigate potential risks.

Our approach provides unbiased measures for equity capital and loss provision derived from the institution's unique portfolio experience. The system is risk classification independent and can utilize any and all risk-related information available.

PortfolioView™ fully supports the Basel II basis for risk assessment using the Internal Ratings Based approach. From a regulatory standpoint, PortfolioView™ resolves the difficult issues of reliability and validation: our system is fully transparent and easily understood by all counterparties such as management, auditors, regulators and investors.

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