Through tailored consulting solutions, the Algo Credit Advisory team helps firms identify, measure and manage credit risk. As a committed partner, Algorithmics provides practical guidance and a solid understanding of risk management best practices to help financial institutions build and refine credit processes and leverage risk management tools to improve business decision making.

Benefits

Proven expertise and guidance
The Algo Credit Advisory team works with institutions to evaluate and improve the processes, policies and procedures underlying lending and credit activities. Algo Credit Advisory offers customized credit risk solutions that extend across the design, benchmarking and implementation of credit risk management processes and functions, credit loss data collection, internal credit ratings, and credit risk modeling and quantification.

Support for internal modeling and rating methodologies
Algo Credit Advisory provides expertise and guidance in the development of robust, customized internal credit models and rating processes. The team's experience covers public and private firms, securities and loans, as well as externally rated and unrated counterparties. Institutions work with the Algorithmics team to ensure that their existing internal ratings models are robust. In addition, the team helps firms develop new ratings approaches linked to consistent measures of default risk across all counterparties, for use in advanced portfolio management and regulatory compliance.

Validate internal ratings for Basel II IRB banks
Given the pivotal role of internal ratings under the Basel II IRB approach, the Algo Credit Advisory team has defined a structured, efficient approach to validate internally developed ratings and associated credit measures using robust out-of-sample data and methodologies along with expert qualitative analysis.