11.06.2010

On June 9, 2010, with the communicational support of R.I.M. Porter Novelli, Moody’s Analytics, the world leading solutions supplier in the field of risk management presented to the Russian banking industry a new model for judging the risk of defaults by Russian private companies - RiskCalc Russia™.

More than a hundred representatives from the banking sector gathered in the Baltchug Kempinski Moscow hotel to get acquainted with this new instrument for assessing risks. 

Financial institutions are witnessing an increasingly large demand for quantitative risk assessments for the crediting of non-public companies. This stems from demand from shareholders looking to optimize the correlation between risk and profitability, and from regulatory bodies controlling the sufficiency of the capital of credit-issuing banks.

RiskCalc – a model developed and tested using more than 800,000 sets of financial reporting of more than 290,000 Russian companies for the period from 2002 to 2009 – is currently the only credit risk assessment model created especially for the Russian market. It allows banks to accurately, consistently and effectively assess credit risks related to Russian private companies. Moreover, RiskCalc makes it possible to compare the risk of default of a particular company with that of other companies operating in the same industry.

Charles Stewart, Senior Director of Moody’s Analytics, said: “As a consequence of the financial crisis, competition for quality borrowers in the Russian market has markedly increased. Nevertheless, we feel that Russian banks can take carefully measured credit decisions if they will have the possibility to evaluate the risks they are taking onboard, for which purpose we should begin with the establishment of a well-structured and integrated system of risk management.”

Robert King, Manager of the Sales Department for the EMEA Region, added: “We believe in the Russian market, and by the end of the year we are planning to introduce another new product - a Russian version of the Risk Analyst platform, which permits simultaneous spreading of financial data, analysis of the condition of credits, and saving the necessary data. Risk Analyst is already used by leading financial institutions throughout the whole world, and we can bring this technology to the Russian market too.”

In attendance at the event were 14 journalists of leading business and specialized industry publications.