Banking’s only comprehensive industry standard for credit risk benchmarking.
The advantages of ongoing peer-to-peer comparisons are on full display with this unique program, a joint partnership from The Risk Management Association (RMA) and AFS. You’ll benefit from banking’s only comprehensive industry standard for credit risk benchmarking. Started in 2003, the Program now has credit data history dating back through a complete and historic credit cycle, providing for deep analytics on performance dynamics by industry sector, geography, collateral type, vintage, and more.
Representing an industry-led consortium, participants in the RMA/AFS Risk Analysis Service (RAS) perform actionable comparisons of their own data with that of peer banks and the industry as a whole across multiple asset types and segmentations.
The depth of analysis RAS delivers is especially important in today’s banking environment. Its benchmarking data—normalized through standard data definitions for meaningful comparability across the industry—empowers business strategy while satisfying regulators, boards of directors, and investors as they seek to understand where your institution’s risk levels and appetite stack up in relation to peer banks and the industry as a whole.
RAS is easy to deploy and use. Member banks provide a quarter-end, loan-level data extract from a data warehouse or commercial lending system(s) via a secure electronic transmission to AFS, who serves as the data custodian. Data is loaded into the RAS Workstation, on online, easy-to-use tool providing rich analytical and charting capabilities.. Sophisticated enough for analyst needs—yet intuitive enough for all users—the RAS Workstation facilitates standardized peer comparison reporting, customized reports, queries targeted by specific need, and other impromptu analysis prompted by market events.
Armed with new knowledge of relative risk in your portfolio, as a RAS participant you can comprehensively manage risk and formulate business strategy by:
- Assessing the composition and performance of your portfolio
- Monitoring and managing your relative exposure to credit risk in key portfolio segments
- Relating loan performance to portfolio segments on an industry-wide basis
- Improving strategic intelligence linked to geographic and line of business growth
- Supporting compliance and disclosure
- Benchmarking risk rating parameters to market data for Basel II validation
Access the multifaceted knowledge base that RAS has to offer: actionable data, expert analysis, and peer-to-peer dialogue through quarterly standard reports, quarterly Webinars, and one on one meetings. To learn more, contact us.