Risk Analysis Service

The Risk Analysis Service: Commercial and Industrial Loans and Commercial Real Estate

RAS: The Industry Standard—Global Reach, Local Markets 

The RMA and AFS® Risk Analysis Service (RAS) is global banking’s only comprehensive industry standard for credit risk benchmarking. Representing an industry-led consortium, RAS members perform actionable comparisons of their own data with that of peer banks and the industry as a whole across multiple asset types and segmentations.

RAS members use the RAS data to:

  • Set limits based upon industry and geographical levels.
  • Internally compare their affiliates or regions or lines of business.
  • Verify risk ratings.
  • Identify the impact of credit policies in effect for particular periods of time.
  • Compare their performance for specific industries vs. peers.
  • Compare acquired assets vs. legacy assets.
  • Use peer information to set policies.

The depth of risk management analysis RAS delivers is especially important in today’s banking environment. Its benchmarking data—normalized through standard data definitions for meaningful comparability across the industry—empowers business strategy while satisfying regulators, boards of directors, and investors as they seek to understand your institution’s levels of risk relative to the industry.

Ten Years of Comparative Data and Growing

RAS has delivered credible, reliable, and timely credit risk management data for more than 10 years to the world’s leading banks. Through our commitment to bring the best in credit risk benchmarking to the industry, we have been able to develop and refine our approach with the help of participating members to ensure that RAS remains at risk management’s leading edge, providing practical information and risk analysis tools that drives continuous improvement.

Key Features of RAS Membership

  • Provides multidimensional comparisons that cross an array of relevant risk categories.
  • Delivers unmatched risk management analytics using the RAS Workstation, which powers multidimensional comparisons and furnishes templated and limitless ad hoc reporting.
  • Timely access to actionable data and expert analysis through quarterly reports and webinars.

Unmatched Strategic Risk Management

Armed with timely, robust information of relative risk in your portfolio, you can comprehensively manage risk and formulate business strategy by:

  • Assessing the composition and performance of your portfolio.
  • Monitoring and managing your relative exposure to credit risk in key portfolio segments.
  • Relating loan performance to portfolio segments on an industry-wide basis.
  • Improving strategic intelligence linked to geographic and line-of-business growth.
  • Supporting compliance and disclosure.
  • Benchmarking risk-rating parameters to market data for Basel II validation.

Easy, On-Demand Risk Analytics for Financial Institutions

RAS is easy to deploy and use. Member banks provide a quarter-end, loan-level data extract from a data warehouse or commercial lending system(s) via a secure electronic transmission to AFS, the data custodian. Data are then loaded into the RAS Workstation for on-demand access. Sophisticated enough for analyst needs—yet intuitive enough for all users—the RAS Workstation facilitates standardized peer comparison reporting, customized reports, queries targeted by specific need, and other impromptu analysis prompted by market events.

For more information, please contact your regional manager.