Oliver Wyman and RapidRatings Launch Robust CECL Forecasting & Challenger Model Solution for Financial Institutions with Introduction of CommForecaster
May 20, 2021
New York – Oliver Wyman and RapidRatings today announced the launch of Oliver Wyman CommForecaster, a secure, online-based loss forecasting and stress testing platform built to help financial institutions—primarily banks—manage their commercial and industrial (C&I) loan portfolios of public and private obligors, while adhering to CECL standards and informing other exercises.
CommForecaster, an Oliver Wyman solution powered by RapidRatings, equips a wide range of bank executives with the ability to conduct their commercial and industrial loan portfolio risk measurement and management responsibilities with a greater degree of confidence. Not only does the platform forecast C&I loan losses accurately, CommForecaster also delivers robust, quantitative, fundamentals-based scenario analysis to authoritatively challenge incumbent models and better inform CECL, CCAR, DFAST and internal stress-testing exercises. In addition, CommForecaster allows effective reserve planning management, while ensuring suitable regulatory reporting and bottom-up analysis to ultimately inform strategic planning and decision-making.
"As the economy recovers from the pandemic-related economic shock, uncertainty about credit performance remains, and commercial lenders must assess risks in their portfolios based on a range of plausible scenarios to be able to tune their strategy," said Deepak Kollali, Co-Head of the Finance & Risk practice at Oliver Wyman. "CommForecaster has a simple-to-use interface that enables lenders to simulate losses not only under different macroeconomic scenarios but also by stressing the balance sheet of the borrowers."
CommForecaster combines the power of Oliver Wyman’s proven loan loss methodologies and RapidRatings’ FHR® Transition Probability Matrix (TPM) which computes expected cumulative probability of default (PD) for the life of the loan for any C&I commercial loan overlaid with macroeconomic forecasts.
“We’re thrilled to bring to market—via Oliver Wyman’s CommForecaster—a new generation of risk management modeling for financial institutions, against both challenger and champion inventories, to provide users with term PDs continually for the next 13 quarters and well beyond,” said Douglas Cameron, President & Co-Head of Product at RapidRatings.
- Greater accuracy in setting C&I loss expectations
- More informed decision-making for loan pricing, origination, and monitoring
- Data-based, consistent, and independent measurement of creditworthiness for C&I obligors
- Increased robustness in reporting ability to meet regulatory and accounting requirements
- Greater internal collaboration on, and new capabilities for, internal modeling, processes, and exercises in the C&I space
To learn more about Oliver Wyman CommForecaster, please see here.
About Oliver Wyman
Oliver Wyman is a global leader in management consulting. With offices in 60 cities across 29 countries, Oliver Wyman combines deep industry knowledge with specialized expertise in strategy, operations, risk management, and organization transformation. The firm has more than 5,000 professionals around the world who work with clients to optimize their business, improve their operations and risk profile, and accelerate their organizational performance to seize the most attractive opportunities. Oliver Wyman is a business of Marsh McLennan [NYSE: MMC]. For more information, visit www.oliverwyman.com. Follow Oliver Wyman on Twitter @OliverWyman.
RapidRatings® sets the standard for financial health transparency between business partners, transforming the way the world’s leading companies manage enterprise and financial risk. RapidRatings provides the most sophisticated analysis of the financial health of public and private companies in over 140 countries worldwide. The company’s predictive analytics provide insights into how suppliers, vendors, and other third parties are likely to perform. For more information, visit rapidratings.com. Follow RapidRatings on Twitter @RapidRatings.