Early Warning Signs (EWS)
Preventive identification and management of clients showing difficulties prior to failed installments through an Early Warnings Signs system that supports the configuration of warning triggers, identifies clients with problems and provides the communication workflow between all departments to set an action plan for those clients.
Main Advantages
The module allows not only to configure the indicators that reflect signs of credit difficulties (according to the bank's internal triggers), but also their periodic execution, managing action plans through a workflow and communication between different departments, as well as providing dashboards that show the EWS process and the effectiveness of the action plans.
Configuration section where the triggers of the bank's EWS model are identified, configured, as well as the criteria/values that set them off. This includes an area to automatically identify customers with active triggers by running those triggers periodically over the credit portfolio.
Control panel for individual analysis of clients with early warning signs, management of communication between different departments of the organization and definition of action plans for each client.
Dashboard with the evolution of the portfolio in terms of the EWS process and the effectiveness of the respective action plans.
Configuration section where the triggers of the bank's EWS model are identified, configured, as well as the criteria/values that set them off. This includes an area to automatically identify customers with active triggers by running those triggers periodically over the credit portfolio.
Control panel for individual analysis of clients with early warning signs, management of communication between different departments of the organization and definition of action plans for each client.
Dashboard with the evolution of the portfolio in terms of the EWS process and the effectiveness of the respective action plans.
How it Works
The early warning signs process allows you to identify riskier clients that could enter shortly in default and take appropriate actions, negotiated with the client, to prevent those defaults from happening.
The EWS module is based on the production of information from the bank’s integrated databases (loan information, past trigger details, client’s data, client’s default behavior and past action plans) collected on a periodic basis.
To ensure total flexibility for the bank, there is a configuration section where the triggers of the bank's EWS models can be configured. This section allows the user to set different triggers depending on the different segments or subpopulations of the credit portfolio (e.g. Retail vs. Companies).
On a periodic basis or at request, the EWS process can be executed for the most updated data of the credit portfolio, allowing the production of a list of clients with one or more EWS activated triggers. The user can search, filter, or choose any client with active triggers, analyze the client’s current position, past delinquency and triggers and the factors that led to the trigger's activation.
For each client with an activated trigger, the solution provides capabilities that make it possible to analyze the detail of the trigger, carry out the necessary communications with the branch as well as back-office directions (e.g. Recovery and Litigation) with a view of analyzing and addressing the situation, including the definition of action plans focused to rehabilitate the client that is showing early warnings signs.
Set of dashboards on the evolution of the target portfolio in terms of EWS, as well as the effectiveness of action on those alerts. This module consists of a standard set of graphics that come up with the Solution, with the additional ability by the user to create additional graphics via Power BI features.
System Features
These features help you manage all the dimensions and components of the early warning signs process.
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Parameterization of EWS model parameters
In a first moment, the user is able to configure all EWS module triggers which will be executed over the credit portfolio database on a periodic basis allowing the identification of clients who show early warning signs.
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Analyze clients with active triggers
Capacity to search and analyze any client with active triggers, including information on the client’s current position, detail of each loan and the historical triggers that were activated in the past
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Management of Action Plans
Workflow that allows the communication between different departments in order to define, if needed, an action plan for the client under analysis in order to prevent a future default from happening.
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EWS Process Dashboard
Dashboards and reports that provide information on the EWS process as well as on the effectiveness of the action plans . This allows the Risk Officer to better manage the risk and upward reporting strengths, improving the agility and robustness of decision-making process.
In a first moment, the user is able to configure all EWS module triggers which will be executed over the credit portfolio database on a periodic basis allowing the identification of clients who show early warning signs.
Capacity to search and analyze any client with active triggers, including information on the client’s current position, detail of each loan and the historical triggers that were activated in the past
Workflow that allows the communication between different departments in order to define, if needed, an action plan for the client under analysis in order to prevent a future default from happening.
Dashboards and reports that provide information on the EWS process as well as on the effectiveness of the action plans . This allows the Risk Officer to better manage the risk and upward reporting strengths, improving the agility and robustness of decision-making process.
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