Risk: Credit

In many institutions credit risk measurement has failed to predict and measure changes in credit grades and defaults in the current difficult environment. Novantas helps clients calibrate their credit risk measurements with modeling techniques that overlay information on current market conditions on traditional measures of credit risk. We combine institution-specific information with market information to build customized models.

Novantas helps institutions with their credit risk management. Our recommendations focus on core components of credit risk management, including underwriting, risk grading, portfolio management and problem credit management. We have addressed these issues as practitioners and consultants for diverse portfolios of credit risk.

Novantas works closely with consumer and credit card teams to improve portfolio performance. We help clients refine and implement customer grading/scoring approaches, improve underwriting, and develop sophisticated approaches for problem credit management.

Novantas works with commercial credit teams to improve all aspects of the commercial credit measurement and management process. We help institutions calibrate their internal credit scoring processes with benchmark data to improve projections of credit risk. We evaluate portfolio management processes, identify ways to improve portfolio performance, and we build decision tools that improve analysis of risk/return tradeoffs.

Optimization of securitizations benefits from a perspective that optimizes the value to the institution of the securitized and retained loans. Novantas helps institutions build these portfolios with pool identification, structuring, and rating agency interactions often in conjunction with an investment bank.

Enhance Consumer portfolio collections capabilities are improved through advanced approaches to collections scoring and collections segmentation. From there, Novantas recommends approaches to leverage these insights that improve collections results and increase collections efficiency.