Credit Risk Solution SuiteSafeguard against counterparty credit risk failure
Credit Risk Solution Suite
The Impact of Market Volatility and Financial Reform
Market volatility coupled with uncertain regulatory reforms require holistic, transparent and flexible credit processes to safeguard against failure. Companies involved in volatile commodity markets, regardless of size, need deeper insight and better control around credit exposure. Organizations that have the ability to correctly and comprehensively manage counterparty credit risk are best positioned to preserve favorable financial ratings, protect against over exposure, improve margins and retain shareholder confidence.
Manage the 5Cs of Credit Risk
Triple Point’s Credit Risk solution provides comprehensive coverage across the key areas of credit risk, widely known as ‘The 5Cs’ — Counterparty; Contract; Collateral; Concentrations; and Credit Analytics. It delivers up-to-the-minute, enterprise-wide credit risk intelligence – enabling companies to reduce financial risks, lower costs and optimize liquidity.
Manage the 5C’s of Credit Risk
Counterparty Management – Capturing a 360 view of all relationships
Commodity XL for Credit Risk™ captures a detailed view of all counterparties into a single, actionable repository which enables effective management of counterparty relationships. By coordinating core counterparty and contractual information, Commodity XL for Credit Risk enables organizations to dramatically improve the accuracy of credit analysis and decisions.
Commodity XL for Credit Scoring™ provides a standardized and auditable approach to evaluate counterparties. It tracks counterparty financials and ratings, sets credit limits and monitors exposure. Companies can utilize their own unique knowledge, policies, and risk factors to score counterparties and reduce reliance on credit rating agencies. This fully customizable solution delivers improved efficiency and greater insight for more profitable decision making.
Contract Management – Optimize your obligations
Commodity XL for Contract Management™ manages the entire contract lifecycle, from contract authoring, negotiation, and approval, through contract execution, ongoing obligations management, contract amendment, and renewal. All contracts are available electronically, streamlining critical business functions and enabling companies to gain visibility into risks, increase revenue, and cut costs.
Collateral Management – Contractually accurate, legally enforceable
Commodity XL for Credit Risk has a robust collateral system that manages margining and contractual terms, obligations and netting formulas to automatically calculate liquidity obligations. The solution is able to roll-up information for executive decision making as well as drill down to granular, deal-level data to facilitate the margining process.
Concentration Management – A consolidated, real-time view of exposure
Commodity XL for Credit Risk delivers a consolidated, real-time view of exposure across all business units resulting in quick access to identify, monitor and mitigate future credit events. The software calculates cash, forward and current exposure on a portfolio-wide basis and produces concentration analysis by commodity, industry sector, credit rating, country and any number of other metrics, enabling firms to align risk profile with risk appetite.
Credit Analytics – Manage market uncertainty
Commodity XL for Credit Analytics™ models stress scenarios (percent, absolute, and relative price movements), statistical simulations (Monte-Carlo Potential Future Exposure (PFE)), and Credit Value at Risk (CVaR). By applying full contract netting/margining terms and default probabilities, the system delivers contractually accurate results.