OCM Optimized Credit Risk Mitigation
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!