ProMS CRE Lender

Radley & Associates have developed an industry-leading risk engine called ProMS. Using the latest web-deployment technology, and the most advanced analytical engine, ProMS calculates all credit risk measures in CRE lending:

• Probability of Default (PD)
  • Or internal bank grade
• Loss Given Default (LGD)
  • Basel II requires lenders to assume LGD is 40% if they cannot calculate it
• Expected Loss (EL)
  • PD x LGD: eqivalent to provision level
• Maximum probable loss (MPL)
  • Loss in the worst case scenario
• Economic capital (EC)
  • Amount of shareholder capital required for loan (risk adjusted)
• Risk Adjusted Return on Capital (RAROC)
• Economic profit (EP) or Economic Value Added (EVA)
  • Measures which are being adopted by many banks

ProMS can help lenders at each stage of the business cycle:

• Price and structure loans to make them more profitable
• Make critical credit decisions
• Understand diversification within the portfolio
• Generate detailed risk-committee proposals
• Differentiate introducers and RMs by the quality of deals they are bringing in, not just the quantity
• Understand the portfolio risk in depth
• Stress loans and portfolio using custom and regulatory stresses
• Bring risk into the MI reporting cycle
• Easily carry out many difficult portfolio analysis tasks, such as grade migration
• Cut the portfolio along any lines, including risk statistics
• See likely portfolio at any stage in the future (including run-offs, change in risk etc)
• Make strategy decisions, while modelling all the options

For more details, log in to view a series of demonstration videos about our industry-leading CRE risk analysis software, ProMS.

If you don't yet have account details, please contact us and we will arrange it.