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As financial institutions have begun to re-evaluate their CRE risk assessment process, it has become apparent to many that only limited or incomplete CRE deal data exists centrally within the organization. This article investigates the impact that missing data has on the risk assessment of commercial real estate assets. The impact is first shown at the level of an individual deal and then the effect is demonstrated for a portfolio. The paper also suggests algorithms that can be used to quantify the accuracy of portfolio loss estimates and to guide the prioritization of collecting the missing data.

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