Improving credit risk management – it’s what we’re all about
As the leading worldwide innovator in risk management solutions for retail and small business lending, Fair Isaac is uniquely positioned to help financial services institutions turn Basel II compliance into opportunity.
Fair Isaac continues to track the development and progress of the New Basel Capital Accord, also known as Basel II, and its implementation direction around the world. Basel II seeks to advance a safer, more stable financial system throughout the world by matching the level of regulatory capital required to the level of risk and sophistication of risk management associated with an institution. The Basel Committee on Banking Supervision published the Final version of the Basel Capital Accord on June 26, 2004, and continues to publish further guidance regarding the Accord's acceptance and implementation. Various national and regional jurisdictions are providing similar guidance and are performing similar out-reach activities.
Satisfying the intent of Basel II will be an ongoing endeavor. Leading proponents of the Accord have suggested that we think of this as the release of Basel 2.0, with regular updates to come. The most effective solutions will therefore integrate data, analytics, strategies, and technology in a continuing cycle of learning and development. And these solutions will recognize the uniqueness of each institution and its approach to risk management and capital allocation. With nearly 50 years of experience applying analytics and decision technology to retail financial services challenges, and in working to satisfy regulatory concerns, Fair Isaac is uniquely positioned for helping lenders throughout the world prepare to meet the requirements of Basel II.
Fair Isaac can help turn compliance into competitiveness
Basel II aims to reward the adoption and use of best-practice risk management as a means of compliance. Lenders that take a more effective approach to assessing risk by improving credit risk management processes for estimating risk exposure — and integrating this knowledge into decision-making processes – are expected to reap the rewards of reduced capital reserves. By lowering their capital requirements, these lenders will have more capital available for investment. By contrast, lenders with higher risk portfolios or with inadequate risk management preparation could be faced with increased reserve requirements, and decreased competitiveness.
Fair Isaac’s historical focus on advanced risk management and loss forecasting can help you to not only comply with the letter of the New Accord, but to meet portfolio growth goals – while not exposing operations to needless risk. Our in-depth research, combined with our commitment to “road testing” solution enhancements, maintaining dialogue with regulators, and providing clear roadmaps for improving regulatory compliance, are all evidence of the expertise Fair Isaac offers its clients. And we constantly draw from our risk management expertise around the globe to gain new insight through ongoing client interactions
Looking for more information on Basel II?
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To learn more about the Basel Committee and the New Capital Accord, please visit www.bis.org.
To view past Fair Isaac Basel II Webinars, visit our webinar archive page.