As we continue to deal with the global coronavirus pandemic, there is increased pressure on supply chains and the credit teams to monitor counterparty credit risk more effectively. Real-time credit risk analysis is essential for risk teams to be able to implement mitigation strategies quickly. However, to achieve this, the underlying technology supporting current credit risk processes needs to be re-evaluated. In this blog, we put forward the reasons why deploying modern technology and incorporating the latest in data streaming concepts can give you faster, more accurate insight to mitigate risk and protect profits.
OLAP technology is limiting
Even today, many decision-support applications used by energy and commodity trading firms around are still based on legacy Online Analytical Processing (OLAP) technology. For example, creating pivot tables in excel, where different data sets are combined and aggregated, are still administered via OLAP. Over recent years, there has been greater demand from credit and risk teams to be able to analyse data in more depth and more frequently. This has placed increasing pressure on IT teams to evaluate more modern technology such as Massively Parallel Processing to fulfil these demands.
Data streaming is revolutionising credit risk
Fast forward to 2021, advances in data streaming technology is dramatically changing the credit risk space. Having access to large amounts of live information quickly enables energy and commodity trading businesses to manage risk proactively rather than reactively. Receiving business critical information in real-time supports smarter decisions and drives effective collaboration between front office and mid office risk teams.
A novel approach to real-time exposure analysis
Now, imagine a world where you receive new data information, in real-time, intelligently routed to the individuals or teams that need to be informed.
Brady’s credit risk (BCR) platform provides this advanced level of insight via intelligent alerting. The solution incorporates modern API technology. Real-time automated warnings for increased or unusual trading profiles and patterns are sent to users across the business. Alerts for different types of information can be tailored according to the user’s role.
By adopting the latest technology, energy and commodity trading businesses are better equipped to address the challenges in managing credit risk exposures in unprecedented economic times.
To learn more about how Brady’s credit risk management software solution can help your business, contact us.
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