Easily Adaptable to Each Organization's Unique Way of Doing Business

Risk Integrated designed the Specialized Finance System (SFS) to easily adapt to each bank’s unique way of doing business by working in close cooperation with front-line lending officers, risk managers, and IT managers. Our experience with credit risk and performance analysis on a wide range of asset types, combined with our fully-qualified proprietary software platform, enables us to implement the SFS efficiently.

The risk models within the SFS are completely open for the client to access, understand and change if needed. This fulfils regulators requirements that the models should reflect the institution’s own business, and allows the institution to develop the models as a proprietary competitive advantage.

The SFS provides a fast, secure framework that allows cashflow models, parameters and ratings to be standardized, controlled and audited. This leaves a clear trail about what changes have been made to the models and by whom. The framework is modular and flexible and can incorporate any existing models currently being used by the bank as well as prototypes under development.

After several weeks use, most customers familiarizing themselves with the SFS compile a list of desired customizations to the model and reports. Risk Integrated or the client can make the required changes and install them on the Production servers.

Customization Specifications

Practically-speaking, the best way to complete the SFS customization and integration process for prospective customers is to hold interviews to define requirements. We guide prospective users through the decision-making process by posing questions in these general categories:

  • Which asset classes should be covered?
    • Income Producing Real Estate
    • Commercial property construction
    • Housing construction
    • CMBS
    • Infrastructure
    • Power generation
    • Oil, gas and mining
    • Commercial and Industrial lending
  • Which modules of the SFS should be implemented?
    • Data capture
    • Portfolio stress testing
    • Grading
    • Tenant/counterparty database
    • Number of geographies/sectors to be covered
  • Given the existing system, are any customizations desired?
    • Cashflow models
    • Deal or portfolio reports
    • Data input screens
  • How will the SFS be used in ongoing operations?
    • System used for portfolio management and reporting
    • System used by loan officers for structuring and credit committee approvals
    • Super user selection
  • For using the SFS as a service from Risk Integrated’s servers, what is the hardware sizing?
    • Number of cashflow groups in the portfolio
    • Required turnaround time for running a portfolio
    • Number of simultaneous users
    • Number of offices using system