Solution Brief
Risk Modeling and Decisioning
Banks must achieve greater efficiency and faster response times in their decisioning processes to remain competitive.
The issue
Financial institutions face enormous modeling challenges, including risk and capital optimization, long model development cycles, access to the right data, costly manual processes and regulatory compliance. Current and emerging global uncertainties also are bringing a heightened risk of elevated default rates, asset valuation volatility and liquidity concerns. In addition, the increased complexity of regulatory and accounting requirements, combined with new sources of competition, has put enormous pressure on margins – which in turn is pushing financial institutions to enhance their model development.
These pressures require the measured and profitable introduction of new models, processes and products. Legacy systems simply do not scale efficiently, and their cost structure is unsustainable. To survive and prosper in this environment, you need to make decisions using timely, data- and AI-driven answers and cross-functional collaboration. Banks must achieve greater efficiency and faster response times in their decisioning processes to remain competitive. Because more than ever, time is of the essence.
The challenge
Decisions require access to timely data
Management needs the ongoing engagement of their analytical experts to address the evolving challenges to their balance sheet. SAS provides a highly effective solution that supports collaboration in a distributed environment.
Existing models will need to adapt quickly
Models based on historical data may no longer prove valid, and reliance on their outputs could prove disastrous. SAS allows you to constantly evaluate model performance and readily incorporate expert judgment to address model shortcomings. When required, SAS allows you to efficiently retrain models.
No time for lengthy implementation cycles
To effectively respond to disruptions, leadership needs information immediately. SAS helps you get quick answers without long, complex installation and setup.
Controls and transparency must be maintained
A highly dynamic and iterative environment heightens the risk of operational errors. Our structured approach helps ensure analytical processes maintain controls and auditability.
(Fast analytical deployment;Powerful risk assessment;Dynamic data visualization)
Our approach
Financial institutions need easily accessible, high-performance data and AI to assess, monitor and react to dynamic business conditions.
SAS approaches the problem by providing software and services to help you manage your portfolio with:
Rapid access to powerful risk data and AI
SAS provides a cloud-based, open environment for modeling and reporting that allows analytical teams to quickly respond to urgent challenges like managing liquidity, assessing policy changes and proactively mitigating losses.
Powerful model implementation and execution environment
Quickly construct risk models, identify and resolve issues, and produce results in a collaborative and controlled environment.
Flexible data visualization and analysis
Easily track key metrics and explore the underlying data to determine their respective performance drivers.
Concentration and trend analysis
Monitor trends, such as utilization and delinquency rates, to identify emerging risks to the portfolio and provide insight into strategic actions.
Advanced analytics of SAS Risk Modeling and SAS Intelligent Decisioning enabled us to have deeper lender insights. By automating the credit risk management process, we could quickly evaluate loan applications and make better credit decisions. This reduced the likelihood of defaults and non-performing loans, thus reducing the overall risk.Pham Duy Hieu Acting CEO, ABBANK
SAS difference
SAS helps financial institutions of all sizes and levels of complexity address their most challenging issues in risk and financial management. Our decades of global experience and leading-edge data and AI platform provide:
A cloud-based environment for immediate deployment
- Time to availability is measured in hours, not weeks. A cloud-native risk platform is delivered quickly on public or private clouds. Quick-start templates automate installation.
Flexibility and scalability to meet evolving requirements
- Highly automated, dashboard-driven capabilities support your immediate needs while encouraging more expansive use across the organization for a wide variety of challenges.
Proven, high-performance data and AI
- Financial institutions across the globe rely on SAS for critical risk management and finance functions. Our industry-leading data and AI platform enables firms to address their business challenges effectively and efficiently.
Technical and subject-matter expertise
- SAS offers both technical and domain-level support services to help ensure your immediate and ongoing success.