Risk and Credit Management

The value of alternative data compared to traditional information.

The origin of the blockchain is rooted in the need to allow consumers and suppliers to connect directly, removing the requirement for a third party to exchange virtual currencies such as bitcoin.

Stress test measure a bank’s reaction (in terms of earnings, capital and liquidity) to a hypothetical macroeconomic scenario. The 2018 edition was launched in January and banks are expected to provide their preliminary projections by the end of June. Full results for will be disclosed in November.

This CRIF-SDA Bocconi research edition looks in detail at innovation in the consumer credit market, with the valuable contribution and support of EUROFINAS.

The introduction of forward-looking expectations in the credit risk assessment could give rise to an increase of the provisions’ volatility on banking financial statements.

The impact of the IFRS 9 impairment model on the financial statement will be correlated to the adequacy of the pricing assessment at the time of disbursement.

Quantification of the increase in provisions for loans to Italian private individuals and SMEs.

Banks will need to define a roadmap of actions, with the development of a Credit Information Framework as its first pillar,  aimed at developing the industrial management of non-performing loans (NPLs).

How to integrate a forward looking component in the risk assessment of companies into lending and credit management processes using an automated simulation tool.

The big data methods adopted by CRIF help reconstruct the links in the value chain, integrating open data coming from a number of heterogeneous sources.