Introducing IRB Nexus
IRB Nexus is an innovative credit analytics tool designed in partnership with Oliver Wyman. Fueled by Oliver Wyman analytics and Credit Benchmark data, the tool assists banks in enhancing their internal ratings-based (IRB) models. It addresses the challenges posed by evolving regulatory requirements, particularly for low-default and no-default portfolios, where traditional data sources often fall short.
By aggregating credit evaluations collected by Credit Benchmark from over 40 banks, IRB Nexus provides access to more than 10 million risk estimates annually. This extensive dataset enables banks to validate their risk models effectively and demonstrate compliance with regulatory standards.
The tool is tailored for financial institutions seeking to improve their credit risk assessment processes, allowing them to leverage collective insights for more robust modeling. By utilizing IRB Nexus, banks can optimize their capital reserve requirements, ensuring they maintain a competitive edge in lending while effectively managing risk. The solution fosters proactive risk management through the development of early warning systems, empowering banks to make informed decisions and reduce systemic risk exposure. Additionally, IRB Nexus supports the expansion of modeling capabilities across different geographies and sectors, broadening lending opportunities and enhancing overall risk management frameworks.
Enhancing Compliance and Risk Management
IRB Nexus provides banks with aggregated data from Credit Benchmark, enabling them to validate their IRB models effectively. This collective insight not only satisfies regulatory scrutiny but also reduces the capital reserves required for lending.
Additionally, IRB Nexus offers customized analytics and comprehensive documentation support, ensuring banks meet regulatory requirements while justifying their assumptions. The tool also facilitates proactive risk management through early warning systems, allowing banks to mitigate exposure to systemic risks. By expanding modeling capabilities across various regions, IRB Nexus enhances risk assessments and broadens lending opportunities, making it an essential resource for financial institutions. Designed as an ongoing service, it ensures continuous improvement through annual updates and analytics for client portfolios.
Benefits and Advantages of IRB Nexus
IRB Nexus offers a suite of innovative features designed to enhance banks’ credit risk modeling capabilities.
Unlock Comprehensive Credit Data
Access a vast array of credit evaluations, enriching risk analysis with diverse insights for better decision-making.
Strengthen Risk Model Validation
Utilize a robust dataset to enhance model accuracy, ensuring compliance and reducing regulatory capital burdens.
Customized Analytics and Documentation
Tailored analytics and thorough documentation support regulatory compliance and strengthen model justification efforts.
Proactive Risk Management Strategies
Leverage early warning systems to identify potential risks, enabling timely interventions and informed credit decisions.
Expand Geographic Risk Modeling Capabilities
Expand modeling reach into new sectors and regions, enhancing risk assessments and creating new lending opportunities.
Continuous Analytics and Improvement
Receive regular updates and analytics to adapt to changing regulations and enhance ongoing risk management practices.
Learn More
Get in touch for more information about IRB Nexus or to set up a demo with the Credit Benchmark team.
