New York, NY, November 26, 2024 – Credit Benchmark, in collaboration with Oliver Wyman, announced today the launch of IRB Nexus, an innovative credit analytics solution that helps banks enhance regulatory compliance of their internal ratings-based (IRB) models, specifically for low- and no-default portfolios. IRB Nexus is Oliver Wyman’s modelling analytics powered by Credit Benchmark data. The solution helps financial institutions to more effectively validate their IRB models, maintain a competitive edge, and address regulatory requirements.
As banks adapt their IRB models to meet evolving global regulatory standards, many struggle to assess risk for low-default portfolios that lack extensive historical data. These portfolios, which may include funds, including alternative investment funds, and non-bank financial institutions are frequently monitored by global regulators due to their potential systemic impact. Without sufficient validation for these models, banks risk facing demands to increase capital reserves—a measure that can restrict lending capacity and hinder competitive positioning.
IRB Nexus helps banks to address these challenges by aggregating more than 10 million risk estimates annually from over 40 of the world’s largest banks. Leveraging Credit Benchmark’s extensive dataset, IRB Nexus offers banks comprehensive benchmarking analytics for validating their own IRB models, allowing them to operate with greater confidence.
“IRB Nexus has the potential to be transformative for banks looking to significantly bolster their historical credit analytics data feeding their capital models,” said Cem Dedeaga, Partner at Oliver Wyman. “With Credit Benchmark’s aggregated data, we’re empowering risk officers with the insights needed to meet regulatory expectations while sustaining their lending potential.”
Michael Crumpler, CEO of Credit Benchmark, added, “We’re proud to bring our extensive dataset to IRB Nexus. By equipping financial institutions with critical data on low-default exposures, this collaboration enhances risk modeling for portfolios that traditionally lack sufficient information, fostering transparency and reliability in commercial credit assessments.”
Supported by a structured implementation process customized to each client’s portfolio, IRB Nexus easily integrates with the client’s IRB models.
For more information on IRB Nexus please visit oliverwyman.com or to schedule a consultation, please contact [email protected]. To learn more about Credit Benchmark, please visit creditbenchmark.com or contact [email protected].
About Credit Benchmark
Founded in 2015, Credit Benchmark is a leading provider of credit risk data and analytics. The company aggregates and anonymizes contributed risk data from over 40 global financial institutions, producing unique obligor-level Credit Consensus Ratings and other key credit metrics. Covering more than 110,000 legal entities—90% of which are not publicly rated—Credit Benchmark’s insights are trusted by major financial institutions worldwide to enhance their internal credit risk analysis and gain accurate risk perspectives. Credit Benchmark is headquartered in London with offices in New York and Bangalore. For more information, visit creditbenchmark.com, or follow on LinkedIn and X.
About Oliver Wyman
Oliver Wyman, a business of Marsh McLennan (NYSE: MMC), is a management consulting firm combining deep industry knowledge with specialized expertise to help clients optimize their business, improve operations and accelerate performance. Marsh McLennan is a global leader in risk, strategy and people, advising clients in 130 countries across four businesses: Marsh, Guy Carpenter, Mercer and Oliver Wyman. With annual revenue of $23 billion and more than 85,000 colleagues, Marsh McLennan helps build the confidence to thrive through the power of perspective. For more information, visit oliverwyman.com, or follow on LinkedIn and X.
Contacts
Laura Saville, Credit Benchmark Marketing
[email protected]
+44 (0) 20 7099 4322
Patricia Romero, Marsh McLennan
[email protected]
+44 (0) 7825 193311
