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Credit Risk & Exposure Monitoring

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Credit & Exposure Monitoring – Advanced Risk & Capital Optimization

Monitor, Measure, and Mitigate Credit Risk with Precision: Axley’s Credit & Exposure Monitoring module empowers financial institutions to proactively manage credit risk, capital adequacy, and regulatory compliance through robust exposure tracking, RWA (Risk-Weighted Assets) optimization, and ECL (Expected Credit Loss) calculations.

Designed for banks, insurers, and investment firms, the solution ensures alignment with Basel III/IV, IFRS 9, and CRR requirements while enhancing risk-adjusted profitability.

Capital Adequacy and RWA: Measurement, Management and Reporting

  • Automated computation of RWA across all exposure classes: credit, counterparty, and sovereign, under Standardized and IRB approaches.
  • Granular exposure segmentation by rating, collateral, maturity, and regulatory classification.
  • Real-time capital monitoring to support ICAAP, Pillar III, and capital optimization strategies.
  • Integrated mapping with internal rating models, credit limits, and provisioning engines.
  • Regulatory compliance with Basel III, CRR/CRD IV-V, and local supervisory frameworks.
  • Strategic benefit: align capital consumption with portfolio risk and improve RoRWA (Return on RWA).

Expected Credit Loss – ECL Computation under IFRS 9

  • Stage 1, 2, and 3 ECL automation with built-in PD, LGD, EAD models and override capability.
  • Integration of macroeconomic scenarios (baseline, optimistic, adverse) for forward-looking ECL projections.
  • Audit-ready backtesting and sensitivity tools for IFRS 9 disclosures and internal model validation.
  • Full traceability of assumptions, models, overrides, and historical results for model risk governance.
  • Operational efficiency: reduces manual intervention and enhances the speed and accuracy of provisioning processes.
  • Compliance assurance: with IFRS 9 guidelines and external auditor expectations.

Credit Risk Portfolio Management, Concentration and Scenario Analysis

  • Holistic portfolio visibility with exposure breakdown by industry, geography, rating bucket, and obligor group.
  • Concentration risk monitoring with configurable thresholds and breach alerts.
  • Scenario simulation engine for macroeconomic shocks, sector-specific crises, or systemic events.
  • Early warning system based on triggers (financial deterioration, downgrade, limit breach, etc.).
  • Interactive dashboards and reporting for ALCO, Risk Committees, and Board-level insights.
  • Strategic tool: supports proactive credit risk steering, limit setting, and contingency planning.
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