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About Credit Risk
Consolidate data from multiple upstream commodity trading and risk management (CTRM) systems to measure, manage, and mitigate your counterparty credit risks. Credit Risk is a flexible, web-based credit application that offers comprehensive counterparty, contract, collateral and exposure management, and credit scoring. Our solution automates complex business processes with robust workflow capabilities and user-friendly dashboards.
Why Credit Risk
In today’s volatile marketplace, credit risk management is integral to the long-term success of multinational commodity trading firms, and global commodity merchants. Proper and timely credit risk management is essential to avoid losses should a counterparty default, and to reduce exposure against counterparties that are near or over their credit limits. Our solution gives you the information you need to monitor your risk exposure and the tools to manage it. Credit Risk is available on-premises or as a hosted solution on the ION Cloud.
Manage your counterparties and contracts
Gain full insight into your exposure
Forecast threats
Identify opportunities
Automate business processes
Visualize your full position
Key features
Simplify counterparty management
Manage the entire process—from onboarding to ongoing reviews and maintenance—and store all counterparty information in one place.
Model complex limit structures and hierarchies, and capture important netting and margining contract provisions.
Calculate contractually accurate, legally enforceable exposure across the entire enterprise, and drill down through various levels of aggregated exposure to individual transactions.
Gain security with complete collateral management
Calculate collateral and liquidity obligations with pinpoint accuracy to know exactly when to call for additional collateral as your exposure increases.
Avoid overcollateralization by efficiently allocating collateral to secure exposure against trades in multiple upstream trading systems.
Automate collateral requests and margin call processes, from the generation of requests and call letters to dispute resolution.
Identify risk and opportunities
Identify, monitor, and manage your forward exposure and any future credit events.
Monitor liquidity to ensure unutilized capital can be put back into trading opportunities.
Measure against credit limits and collateral to identify available credit and alert you to any limit breaches.
Boost business productivity
Utilize workflows to automate business processes and streamline daily credit operations.
Quickly review current positions, opportunities, and risks in a configurable dashboard that summarizes all data.
Create data flows and multiple concurrent calculations of credit exposure customized to your credit needs.
Easily connect to other systems
Import data from multiple upstream systems and export to multiple downstream systems using simple database tables and views and web-based APIs (REST).
Integrate for real-time updates or as part of end-of-day processing.
Model complex integration workflows using an ETL engine bundled with the system.
Enhance your solution with optional value-added modules
Credit Risk provides comprehensive insight into your credit risk and exposure, along with the tools to manage it. The solution, which is available on the ION Cloud or hosted on-premises, goes beyond traditional CTRM credit functionality by offering several value-added modules, allowing you to make more informed decisions.
Use sophisticated data-driven credit evaluation to determine counterparty creditworthiness and improve decision making.
Create custom credit scoring models (based on publicly available or proprietary credit score formulas and policies) to consistently rate and score counterparties, monitor counterparty score history, and perform peer analysis.Configure a dashboard summarizing current positions, opportunities, and risks to gain business insights. Perform common daily functions from a single place and drill down into the details of the summarized dashboard widgets for further analysis.
Lower your total cost of ownership and modernize your technology to optimize your operations and empower your business. Secure your data with ION’s multi-layered, trusted security stack.
Frequently Asked Questions
I already have a CTRM. Why do I need ION's Credit Risk as well?
ION Credit Risk integrates with your CTRM system to provide an advanced set of credit risk management capabilities beyond those typically available with a CTRM, such as:
- Granular bucketing of exposure amounts (past due, prior month, month to date, balance of month, forward, 2-month notional, etc.)
- Application of security instruments (collateral, guarantee, insurance, etc.) to separate total exposure from unsecured exposure
- Available credit management to avoid limit breaches
Analyze counterparties qualitatively and quantitatively based on data from rating agencies and financial filings in the credit scoring process.
What differentiates ION Credit Risk from its competitors?
ION Credit Risk has several features that distinguish it from in-house or other commercial solutions:
- Provides flexible options to model any kind of exposure scenario using configurable portfolio layouts, auto-calculated credit limits, and formula-based credit exposure calculations
- Consolidates data from multiple CTRM systems to provide a complete view of exposure across the enterprise
- Easily integrates with any upstream and downstream system
- Automates many manual processes using configurable workflows and ETL-based jobs
Our Credit Risk solution includes a proven track record of over twenty years in the commodity industry.
Is your Credit Risk software easy to integrate with upstream and downstream systems?
Integration is supported using standards-based tools and technologies. Easy-to-understand staging database tables and views, along with well documented REST APIs, are provided for EOD or real-time data transfer into the system, as well as to extract data for downstream reporting. Samples can be provided to aid a customer in developing their own integration with ION Credit Risk.
What are the 5 Cs of Credit Risk?
Our Credit Risk management software provides comprehensive coverage across the key areas of credit risk, widely known as “The 5 Cs.” These include counterparty, contract, collateral, concentrations, and credit analytics. Credit Risk delivers up-to-the-minute, enterprise-wide credit risk intelligence, enabling businesses to reduce financial risks, lower costs, and optimize liquidity.
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