March 30, 2017

Question 01 Answer 03

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RISK-BASED INFORMATION TO MAKE BETTER LOANS

Determine the risk profile of every loan type based on your unique borrowing population
Calculate optimal risk-based pricing given the variables included in the data set you provide to CUFA
Track how changes to the credit scores and collateral values of your borrowers are trending and how that impacts your delinquency and recovery rates
Compute statistical starting points for determining expected loss provisions under FRS 102 / CECL / IFRS 9
Prioritize collections to focus on delinquent loans posing the greatest risk of loss
Identify outlying loans for credit control, internal audit, compliance and overall risk management
Inform your loan underwriting to focus on approving loans most likely to be good performers, avoiding those most likely to go bad
Create custom reports for responding to stakeholder queries to show exactly where there are risks in your portfolio and where you are doing well