Optimization of cross-collateralized Credits +++ Reduced Risk +++ Ameliorated Credit Conditions

OCM Optimized Credit Risk Mitigation

Optimization Methods Optimzation Methods employs a unique mathematical optimization method for cross collateralized credit to significantly reduce RWA and help banks achieve the required Tier 1 capital ratio.

Banks currently use OCM because:

  • OCM can lower total RWA by approximately 5%, even for pre-optimized credit portfolios
  • Basel III imposes stricter conditions for eligibility of equity capital
  • alternative methods such as Simplex or heuristic methods are inaccurate or too slow
  • owing to low interest rates financial institutions are under pressure to cut costs
  • OCM can deliver significant savings in IT expenditures thanks to its efficient use of resources.

OCM is the only standard method which offers:

  • verifiably optimized reduction of RWA
  • close to immediate results when calculating complex credit engagements
  • maximum flexibility through parameterized control
  • a riskfree test calculation

Contact us now to increase your equity ratio and reduce credit risk, and costs!

Improve Capital Adequacy Ratio
Reduce RWA
Reduce IT Cost
Determine Loan Approval Risk