/vkkm:credit-risk

To calculate Expected Loss under the Basel framework, you multiply Probability of Default (PD), Exposure at Default (EAD), and Loss Given Default (LGD). This Skill automates that computation while analyzing borrower financials to provide a loan approval recommendation.

Assessing credit risk involves evaluating borrower financial data, credit ratings, collateral, and loan specifics. This Skill calculates key metrics like PD, EAD, and LGD to determine if the expected return justifies the potential loss for the loan.

Yes, you can use the Z-Score from financial statements to estimate Probability of Default. The Skill adapts to available data, including Z-Scores and credit ratings, to calculate the likelihood of a borrower defaulting.

Loss Given Default is calculated by analyzing the loan details and the value of provided collateral, such as senior secured property. The Skill incorporates these inputs to determine the expected loss amount if a default occurs.

Yes, the credit risk analysis provides a loan approval recommendation. By calculating Expected Loss and Unexpected Loss metrics based on your borrower data, it determines if the loan terms are appropriate for the risk profile.

Unexpected Loss is calculated alongside Expected Loss by analyzing borrower financials, loan specifics, and industry benchmarks. The Skill uses these metrics within the Basel framework to quantify the volatility of potential credit losses.