Targeted credit and operational risk management

Banks, insurance providers and asset management companies face the permanent challenge of finding the perfect balance between risk and return – despite the increasingly volatile capital markets and toughening competition in classic credit business. Before making management decisions, financial service providers have to evaluate and analyze a wide range of return and risk factors, and then use targeted measures to manage them. Whatever the decision - be it about an individual transaction, rating, pricing or portfolio management, regulatory requirements, capital market developments, innovative credit products or strategic objectives – only an integral and systematic evaluation of all relevant aspects will guarantee maximum success.

zeb/ has a clearly-defined concept for forward-looking corporate management. Our methodical approach is based on the state-of-the-art control processes in a modern enterprise risk management framework, quantitative simulation methods, tried-and-tested zeb/ risk models, united with extensive practical experience and a profound knowledge of regulatory requirements. We specialize in the design and implementation of these concepts - and we measure our success in terms of the results of our customers who use the concepts on a daily basis.

zeb/ provides you with all the instruments that you need for the integrated management of credit and operational risks. Our experts optimize your structures, taking regulatory requirements into account, use innovative tools for precise risk measurement and guarantee your success in both the classic credit markets and the capital markets. The zeb/ Competence Center Credit Risk and Operational Risk focuses on the following:       

• Credit risk and enterprise risk management
  zeb/ designs and implements a pro-active credit portfolio management concept for performing and sub/non-performing loans (NPL). We establish credit treasury as an independent success factor in organization-wide enterprise risk management. Based on a comprehensive overall bank management concept, we use risk capital and asset allocation for credit risk methods and processes, and our service portfolio is rounded off by customized limit systems and reporting solutions.         
• Operational risk management (OpRisk) & corporate compliance
  zeb/ helps you to minimize operational risks and ensure compliance with regulatory requirements at all times – at reasonable cost. We don't just focus on audit-relevant aspects, we also keep our eye on the overall interrelationships and requirements of modern management systems to ensure integrated corporate compliance and governance. We support you in satisfying the regulatory OpRisk requirements and in obtaining Basle II advanced measurement approach approval. The zeb/BCM (Business Continuity Management) concept ensures the compliance with MaRisk regulations on integrated crisis management.  
• Methods & models
  Our team of quantitative specialists are mathematical and statistical process experts. We develop rating, scoring and pricing systems for national and international retail and wholesale institutes, design loan portfolio, OpRisk and lease residual value risk models, enterprise risk management systems and Solvency II models. We also have the zeb/-validation platform, a toolkit to ensure conformity with regulatory mathematical and statistical parameter estimation of PD, LGD and CCF/EAD.
• Basle II – regulatory law – reporting
  The new solvency requirements and the treatment of large exposures and million loans are challenging. As one of the first Basle II implementers in Germany and Austria, we develop optimum reporting architectures and ensure compliance with all aspects of regulatory requirements, from design, through technical implementation to process design and disclosures. We also guide you through the IRB acceptance procedures and we have developed reliable standards for the efficient, bank-specific implementation of MaRisk. Our banking know-how is supplemented by insurance expertise; we implement a standardized set of workshops, where we plan all aspects of Solvency II implementation with your staff.  
• Capital markets and products
  The financial engineering and pricing of innovative financial products (ABS, CDS, CDO, CLO, etc.) is increasingly becoming a factor of success and competition. An understanding of and ability to manage these products is an absolute 'must'; not just investment banks but for all financial institutes. Targeted investment is always based on professional value research. We support you in the acquisition of the necessary know-how.
• Credit decision & management processes
  zeb/ helps you to take advantage of the benefits of standardized credit decisions to improve your yields. We begin with product design and then tailor the processes to the products. Our range of services extends from the optimization of processes, through tools for the implementation of automated credit decisions to improving portfolio management efficiency and outsourcing the credit process. We also have a clear concept for the standardization of finance, risk management and controlling processes.
• IT solutions & tools
  We use the zeb/credit.risk-manager module, which is part of our zeb/control software family, for efficient credit risk management. The zeb/risk.adjusted-pricing module is for individual transaction pricing. zeb/basel.II is a standard calculation engine for calculating Basle II minimum capital requirements and it also transfers data to all standard reporting applications. Further individualized tools are used to quantify, control and report risks.

• We speed up credit risk management processes and optimize credit risk structures.  
• You get an efficient reporting system and are able to comply with all regulatory obligations.
• Competence in the capital markets drives up your loan business returns.
• You quickly improve your business customer division's performance.
• Your loan portfolio management is optimally integrated in your bank's overall management structures.