Solution Modules for the Loan Risk Management
of the Hypovereinsbank
The Munich domiciled HypoVereinsbank is one of the leading financial institutions in Germany. It is a member of the Group and of the UniCredit Group. The business fields of the HypoVereinsbank are in the first place private and institutional banking customers as well as capital market activities.
The Starting Situation
The main task for clavis was the improvement of the wholesale banking credit rating, respectively the credit default swaps. The intended solution should permit a reliable assessment with anytime reproducible results.
The Implementation
The actual requirements were related to the credit portfolio management field. The system environment for this field is the application DataWarehouse based on SAS V9 ETL Studio. In a first step clavis has implemented new evaluation algorithms into the existing system architecture. These algorithms are available as centrally accessible and reusable application modules.
The task of the second step was the selection and introduction of an early warning system for credit risks. The desired solution had to provide a reliable valuation of the different business elements, regardless of whether credit risk trading or the credit business itself is involved.
The data needed for the valuation are gathered from the different application systems and external data sources. Subsequently these data are transformed and loaded into an operational data store, respectively distributed among different data marts. With help of the Cognos Business Intelligence tool the data then can be analysed multidimensional (compilation of data cubes for a detailed analysis) and graphically displayed as standard reports in expert respective user specific views.
To define an audit proof agile process, we have chosen the control system "visual rules" from Innovations Softwaretechnologie Ltd. This system allows for the identification of rule based outer distant signals. These signals can be scaled according to different alert stages and be integrated into the Cognos reports.
The Effect
The implemented software modules include immediately any recent and for the risk assessment relevant findings. The responsible accountants are enabled to retrieve the data for their valuation reliable and safe from any platform via Web Services. In the user friendly front end of "visual rules" they can build respective rules by their own. By this software different business fields with extremely varying valuation parameters were made comparable.