Product overview
As Chinese financial industry fully opens up, foreign-funded banks
will enter the Chinese financial market in a larger scale. Domestic
banks need to achieve the international standards in risk
management in order to take part in the domestic and international
competitions. However, current risk control level of domestic banks
has a great distance to requirements of Basel Capital Accord”.
Under this new condition, how to enforce risk management and
improve risk management level is an important topic for bank
developments.
Risk Early Warning System reflects bank’s risk profile, omen,
origin, and trend etc, in credit risk, market risk and operational
risk aspects. It is an organic structure made up of index system
and predicting methods. Based on bank operation data and
information technologies, Risk Early Warning System is one of
important application systems of bank business intelligence.
Figure 1 system structure
Functions
Risk early warning system has the following functions:
Financial analysis
Financial statements of bank are the most direct and convenient
tools in risk identification, and analysis of financial statements
is the important content of financial risk analysis. Through
evaluating past operation performance of commercial bank, by using
the following approaches the system can assess its financial
situation and operating situation, and predict the future
developing trend and pay more attention to find out the risk
factors which will possibly influence bank’s future operation
performance.
Comparative analysis approach
Trend analysis approach
Common-size analysis
Ration analysis approach
Specific analysis
Risk rating
The system sets many kinds of risk objects to carry out risk
rating. According to the characters of objects, system establishes
different analysis modules and analysis indices; through regularly
or irregularly calculating risk rates, system finally concludes
risk rates of objects. Risk rating results is one of the important
resources of early warning data of the system.
National risk
Industrial risk
Regional risk
Cross risk
Product risk
Customer risk
Debt risk
Risk early warning
It combines time series changes of financial analysis and risk
rating to realize risk early warning of each index, module and
evaluated object. Early warning includes static, dynamic and period
early warnings. For those objects whose risk rates reach the
appointed values, it will give early warning reminder information.
Comprehensive analysis report
According to the risk rate and early warning status of each
evaluated object, it uses modern portfolio and operation research
theories to set up optimal combination model and automatically
generate analysis reports of various ratings and early warnings and
provide reference for analysis and decision-making.
Parameter and information platform
It can flexibly set parameters, analysis modules and early warning
valve value of system operation, and collect the recent changes of
national policies, institutions and laws, and provide risk guide
for bank business operation and internal management.
Characteristics
It covers wide-ranging; it has comprehensively considered macro
risks such as national risk, regional risk and industrial risk, and
combined them with enterprise micro risks such as financial risk
and credit risk.
It adopts many kinds of risk management systems and applies many
kinds of risk management modules such as Value at Risk (VAR)
module, SWOT module, Capital Asset Pricing model, regression line
module, extended period module and so on.
It combines with the capital risk standards in New Basel Capital
Accord” to scientifically determine risk rated ratio, and provide
various kinds of predicting modules such as regression analysis
module, index-smooth module and moving average module, and
multi-directionally predict development and change of bank credit
asset.
It provides real-time and historical credit risk analysis data for
user; it has diversified data presentation modes which are based on
WEB to realize zero client terminal management.
It combines application systems such as customer relationship
management and asset-liability management to form comprehensive and
all-round application modes.
It has flexible expansibility, so it can closely integrates with
other large scale database products to meet the demands of
enterprises in different scales.
