Credit & Counterparty Risk
The weaknesses in the financial system and its regulation highlighted by the financial crisis shaped the subsequent regulatory response: by strengthening balance sheets and the requirement for more diligent monitoring of credit and counterparty risk.
Challenge: staying compliant and in control
Credit and Counterparty risk managers feel that they miss the necessary controls to confidently assess the risk of their investments and counterparties. Especially when the portfolio is composed of private entities in emerging and/or opaque markets, it can be a challenge to keep things under control. On the other hand, for large established names, there is a risk of information overflow, which makes it difficult to weed through relevant signals.
In short, Credit and Counterparty risk managers face challenges of monitoring hundreds of counterparties in their Portfolio simultaneously with limited resources, while complying with internal guidelines and strict regulatory obligations.
Solution: a 360 degrees view
Owlin is a solution that helps risk managers monitor risk proactively, continuously and in real-time, by tapping into more than 3 million global web sources across the web. In addition, adding additional external data feeds, such as CDS pricing, equity pricing, ratings — and internal data, such as positions and exposures. This helps the risk manager to get an integrated, comprehensive view on their investment or counterparty portfolio.
Result: confident decision-making
Owlin significantly boosts visibility and transparency of the portfolio while highlighting early warning signals. Owlin helps users save time drastically on research and reporting while supporting the risk manager by supporting confident decision-making towards committees, front-office and the regulator.
Testimonial: A good video that captures our collaboration with a leading Credit Risk professional in the UK can be found here, where Schroders’ head of Credit Risk tells more about the future of Risk Management and the role of Owlin herein.