CREDIT RISK

  • Counterparty Analysis

    We assess the creditworthiness of your counterparties based on an analysis of their business and financial risk. A rating synthetises the appraisal.

  • Sector Analysis

    Our reports highlight key sector-specific risk factors.

  • Exposure Measurement

    We quantify both your current and potential future exposure (PFE, or Credit Value At Risk).

Credit Risk Management

Assessing the creditworthiness of your counterparties? Our detailed though concise analysis bring you the information you need. An analysis of the company's activity, its structure, management and ownership, and its position relative to peers constitutes a qualitative business risk appraisal. A more quantitative financial risk review completes the credit analysis with a study of the firm's profitability, solvency and liquidity. A rating, derived from these complementary analysis, allows you to quickly classify your counterparties and focus risk management on the weakest ones. We can assist you in designing credit risk mitigants and to allocate risk limits per counterparty or sector. IRISK also performs sector analysis with particular focus on credit and market risk.

What is your credit exposure? We measure your current exposure aggregating counterparties' mark-to-market under the constraint of possible netting agreements. Determining your potential future exposure (PFE) can be particularly insightful when you take a decision on long-term or structured trades, bearing in mind that deep-in-the-money transactions being cancelled by counterparties are not uncommon in the physical commodities world.