5 Essential Steps to a Dual Risk Rating System

Welcome to this month’s installment of the Risk Insight Monthly Video & Blog Series.

While the appropriate level of complexity of a Bank’s Risk Measurement System will vary by institution and portfolio type, we are seeing more and more Banks adopting a “dual risk ratings” process.

In this dual system, the probability of default (PD) is estimated separately from the loss given default (LGD). The expected loss for a given loan is then calculated as their product.

In this video, we would like to share 5 Essential Steps to a Dual Risk Rating System that can provide best practices for any institution.

WATCH THIS MONTH'S VIDEO NOW

CODA16426_5633 - Durante - Risk Insight - v2

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5 Essential Steps to a Dual Risk Rating System

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