The CZ M3(M-CUBE) is our automation framework for credit risk management
activities. The automation support of the CZ M3(M-CUBE) implementation in CreditMatrix allows a
company to delegate most of the dreary activities of credit risk management to the
software solution. Automation of the grungy credit risk management activities
provides more opportunities for credit risk managers to focus on the tactical and strategic
aspects of credit risk management.
The First M – Model risk
With the CZ M3(M-CUBE), you model what you want to measure and manage
what you measure. The model component enables a company to express its credit risk management
rules and related credit administration work process in models.
The models provide the basis for automation. In CreditMatrix, the models are implemented
in the »Business Process Modeler Modeler and
»Credit Risk Modeler.
The Second M – Measure risk
To effectively manage credit risk, you need to be able to measure the risk. The outcomes of
the operations of the models are several metrics for credit risk measurement. Examples are
risk rating, risk status, credit limit, asset quality, DSO, etc. at both the account
and portfolio levels.
See »The Workbench – Dashboard, Portfolio Analytics and Process Analytics.
This vast array of risk metrics facilitates the application of a more targeted, precise
and effective risk management approach.
The Third M – Manage risk
Once, you can reliably measure the credit risk of an account you are able to manage the risk more intelligently.
The CZ M3(M-CUBE) provides the management framework for managing the risk indicated by
the measurement metrics on a day-to-day basis.
Based on your experience with the measurement metrics, you may choose to refine your
models to capture changes in the credit risk management process that:
- You wish to see measured
- You wish to see adjusted in your existing measurements.
Gain speed and lower bad debt losses by automating your credit risk management work process.