Risk Management & Credit Risk Blog | RMA

Single vs. Dual Risk Rating: Key Differences Explained

Credit risk management has long relied on the implementation and use of rating systems that help lenders quantify, assign, and manage the risk level of credits. Traditionally, these systems have varied in complexity and sophistication depending on a bank’s portfolio size, industries served, customer needs, and, often most importantly, the overall budget and appetite for investing in a customized risk rating system.

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How the Financial System Can Help Solve the Climate Crisis - And Create Prosperity to Boot

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Meet the RMA Board: An Interview with RMA Credit Risk Council Chair and TIAA Chief Credit Officer Seth Waller

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The Shape of Model Risk Management to Come

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Washington - The Week Ahead, June 29-July 3, 2020

June 30, 2020

At 10:00 AM, the Senate Committee on Banking, Housing, and Urban Affairs will meet remotely to hold a hearing entitled: “The Digitization of Money and Payments.”

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How the Financial System Can Help Solve the Climate Crisis - And Create Prosperity to Boot

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Meet the RMA Board: An Interview with RMA Credit Risk Council Chair and TIAA Chief Credit Officer Seth Waller

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The Shape of Model Risk Management to Come

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Leaving LIBOR – What Your Institution Should Be Doing Now

RMA and the International Association of Credit Portfolio Managers (IACPM) presented an informative Risk Readiness Briefing, Leaving LIBOR, featuring Thomas Wipf, ARRC Chair and Vice Chairman of Institutional Securities, Morgan Stanley and RMA’s Fran Garritt, Director of Securities Lending and Market Risk.

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How the Financial System Can Help Solve the Climate Crisis - And Create Prosperity to Boot

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Meet the RMA Board: An Interview with RMA Credit Risk Council Chair and TIAA Chief Credit Officer Seth Waller

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The Shape of Model Risk Management to Come

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COVID-19 and CECL: What Are The Impacts on Model Validations?

Fourteen mid-sized US banks took a combined $17.9 billion of credit loss provisions out of their first quarter earnings, nearly three times the amount taken in Q4 2019, after the coronavirus crisis took a staggering toll on their corporate and retail borrowers. For many market practitioners, this is the first real test of their new CECL models in a severe stress scenario.

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How the Financial System Can Help Solve the Climate Crisis - And Create Prosperity to Boot

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Meet the RMA Board: An Interview with RMA Credit Risk Council Chair and TIAA Chief Credit Officer Seth Waller

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The Shape of Model Risk Management to Come

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Washington, The Week Ahead - June 22-26, 2020

June 23, 2020

At 2:30 PM, the Senate Committee on Banking, Housing, and Urban Affairs will hold a hybrid hearing entitled: “Oversight of the Export-Import Bank of the United States.”

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How the Financial System Can Help Solve the Climate Crisis - And Create Prosperity to Boot

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Meet the RMA Board: An Interview with RMA Credit Risk Council Chair and TIAA Chief Credit Officer Seth Waller

Read More

The Shape of Model Risk Management to Come

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How to Successfully Move to Dual Risk Rating

It may be tempting to think the work is mostly over once a bank decides on moving forward with dual risk rating. For most banks, the move includes expanding a single dimensional master scale (e.g. a 1 – 8 scale) and separating the borrower from the facility risk rating. That change speaks to the change of philosophy of risk rating, but it is much more than that, as many banks find. The keys to making a successful move towards dual risk rating include thinking through all the upstream and downstream implications.

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How the Financial System Can Help Solve the Climate Crisis - And Create Prosperity to Boot

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Meet the RMA Board: An Interview with RMA Credit Risk Council Chair and TIAA Chief Credit Officer Seth Waller

Read More

The Shape of Model Risk Management to Come

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Washington, The Week Ahead - June 15-19, 2020

June 16, 2020

At 10:00 AM, the Senate Committee on Banking, Housing, and Urban Affairs will meet remotely to conduct a hearing entitled: “The Semiannual Monetary Policy Report to the Congress.”

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How the Financial System Can Help Solve the Climate Crisis - And Create Prosperity to Boot

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Meet the RMA Board: An Interview with RMA Credit Risk Council Chair and TIAA Chief Credit Officer Seth Waller

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The Shape of Model Risk Management to Come

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Return to Normalcy: What Internal Audit Should Focus On

As the initial wave of the COVID-19 pandemic tapers off, businesses are looking to reopen and some of the remote workforce will be going back onsite.

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How the Financial System Can Help Solve the Climate Crisis - And Create Prosperity to Boot

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Meet the RMA Board: An Interview with RMA Credit Risk Council Chair and TIAA Chief Credit Officer Seth Waller

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The Shape of Model Risk Management to Come

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Workout and Pre-Bankruptcy Basics and Strategies for Community and Regional Banks Amid COVID-19

As we maneuver through the financial crises brought on by COVID-19, financial institutions may find business customers facing uncertain financial futures and seeking relief on their debts, whether through a structured workout or a bankruptcy proceeding.

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How the Financial System Can Help Solve the Climate Crisis - And Create Prosperity to Boot

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Meet the RMA Board: An Interview with RMA Credit Risk Council Chair and TIAA Chief Credit Officer Seth Waller

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The Shape of Model Risk Management to Come

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Model Validation: Fair Lending Model Validation

Fair lending analysis tries to estimate a causal effect between race, gender or age and credit decision or pricing based on consumer lending transaction data from mortgages, credit cards, and auto loans.

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How the Financial System Can Help Solve the Climate Crisis - And Create Prosperity to Boot

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Meet the RMA Board: An Interview with RMA Credit Risk Council Chair and TIAA Chief Credit Officer Seth Waller

Read More

The Shape of Model Risk Management to Come

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Washington, The Week Ahead - June 8-12, 2020

June 9, 2020

At 10:00 AM, the Senate Committee on Banking, Housing, and Urban Affairs will hold a hearing in hybrid format entitled: “Oversight of Housing Regulators.”

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How the Financial System Can Help Solve the Climate Crisis - And Create Prosperity to Boot

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Meet the RMA Board: An Interview with RMA Credit Risk Council Chair and TIAA Chief Credit Officer Seth Waller

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The Shape of Model Risk Management to Come

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Community Reinvestment Act Modernization Final Rule

During a Risk Readiness Special Coverage Webinar, RMA President and CEO, Nancy Foster, led a discussion panel of OCC officials in covering the features of the OCC’s recently issued final rule modernizing the agency’s regulations under the Community Reinvestment Act.

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How the Financial System Can Help Solve the Climate Crisis - And Create Prosperity to Boot

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Meet the RMA Board: An Interview with RMA Credit Risk Council Chair and TIAA Chief Credit Officer Seth Waller

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The Shape of Model Risk Management to Come

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Designing and Implementing a Dual Risk Rating System Tailored to Your Institution: A Checklist

For decades, the value of a robust, flexible dual risk rating system has been well established as a means by which financial services organizations can better measure and manage credit risk. At a high level, a dual risk rating methodology enables institutions to quantify and assign risk to the individual credit, then see the risk profile of the entire portfolio.

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How the Financial System Can Help Solve the Climate Crisis - And Create Prosperity to Boot

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Meet the RMA Board: An Interview with RMA Credit Risk Council Chair and TIAA Chief Credit Officer Seth Waller

Read More

The Shape of Model Risk Management to Come

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Washington, The Week Ahead - June 1-5, 2020

June 2, 2020

At 10:00 AM the Senate Banking, Housing, and Urban Affairs Committee will hold a hearing entitled “Implementation of Title IV of the CARES Act.”

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How the Financial System Can Help Solve the Climate Crisis - And Create Prosperity to Boot

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Meet the RMA Board: An Interview with RMA Credit Risk Council Chair and TIAA Chief Credit Officer Seth Waller

Read More

The Shape of Model Risk Management to Come

Read More