Portfolio Risk Management

Standard & Poor's Portfolio Risk Management offers a wide variety of products and services designed to help financial professionals measure, monitor, and manage their portfolio credit risk.  These services help address a wide array of current industry-related issues including:

• Increased pressure from regulators to improve credit portfolio analysis and risk-based decision making;
• The need for forward looking credit risk analysis to anticipate changes in the credit profile of obligors, facilities, and the overall credit environment;
• Increased competitive pressures brought on by the broader adoption of Basel II and other best practice risk management frameworks; and
• Volatility in the credit markets.

• Expected loss calculations;
• Portfolio value at risk/economic capital;
• Marginal contribution analysis;
• Concentration analysis;
• Risk contributions of sub-portfolios or individual assets; and
• Stress and scenario analysis.

• Assess credit risk and performance across geographies, business units, sectors, and portfolios;
• Identify and manage industry, sector, and obligor concentrations;
• Determine optimal portfolio composition and hedge strategies;
• Make informed decisions about capital allocation, pricing strategies, and new exposures; and
• Establish and manage a range of limits.