Uncertainty in lending regulatory requirements is putting pressure on credit risk modelers to become more responsive. Munich-based Hypo Real Estate Group (HRE), an international banking specialist for commercial real estate markets and the public sector, implemented a new credit risk management approach. The result: Application development professionals are no longer a bottleneck, and credit risk modelers can respond more quickly to changing regulatory requirements. HRE's experience suggests that business rules platforms will help many financial services firms be more responsive and more compliant in today's uncertain regulatory environment. Application development professionals can learn from HRE's best practices, which are to: 1) provide risk modelers with a rules-authoring environment and 2) create a formal, collaborative rules life cycle.
TABLE OF CONTENTS
The Best And The Worst Of Times For Credit Risk Modelers
Best Practice: HRE Provided Quants With A Rules Authoring Environment
Best Practice: HRE Created A Formal, Collaborative Rules Life Cycle
Best Practice Results: HRE Achieves Greater Agility In Credit Rating
WHAT IT MEANS
The Benefits Of Business Rules Are Not Limited To Credit Risk Modeling
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