Commodity Management BlogInnovative Ideas and Thought Leadership for Volatile Commodity Marketplace
I am pleased to announce that recently Triple Point saw the fruition of its innovative credit research and development when our company was successfully granted US Patent #US007571138B2: “Method, System, and Program for Credit Risk Management Utilizing Credit Limits.”
Abstract: “Software aggregates and integrates credit exposure and credit data across accounting, trading, and operational systems within an organization and generates views of available credit in light of the exposure and credit limits.”
A comprehensive model of exposure to all counterparties, across all of their divisions and subsidiaries, is assembled, enabling the creation of a hierarchical view of each counterparty that models its real-world parent-child relationships.
Credit limits are set across the enterprise, supporting the organization’s unique methodology and business process — and on a granular basis — incorporating factors such as external credit ratings, internal credit scores, commodity, geographic region, deal duration, and security instruments.
Credit, transactions, and risk are then determined at any level in the hierarchy. After aggregating exposure and credit limit information, the system presents a comprehensive, detailed, real-time, enterprise-wide view of current exposure, collateral requirements and available credit for both a company and its counterparties. This makes it easy for users to identify trouble spots by counterparty, geography, industry, and credit rating and to manage the company’s liquidity.”