We help you implement a sound, effective dual risk rating (DRR) process that drives an array of business benefits— from efficiency to more accurate reserve calculations.
Better yet, our deep experience enables you to accelerate implementation and realize those benefits sooner.

Maximizing the benefits of dual risk rating

While DRR has ties to Basel II, its impact on the organization can go far beyond regulatory compliance. For example, a sound, efficient DRR process can strengthen underwriting and enhance risk management. It can also increase efficiency and, by enabling more accurate calculation of all reserves, potentially free up money for revenue generating investments. Delivering these benefits, however, requires diligent planning and implementation. 

  • How will your bank’s projected growth affect risk rating from a policy, process, and technology standpoint?
  • Does your current risk rating methodology have limitations, such as lack of objectivity or granularity?
  • Are you currently implementing DRR but encountering challenges?

A comprehensive DRR implementation approach

West Monroe blends extensive bank operations and compliance experience with deep process improvement and technical expertise to help you implement an effective dual risk rating process. Our approach incorporates the following areas, which are critical to delivering greater benefits:

Process design

Based on study and understanding of the impacts of DRR implementation across credit and back-office activities, we help you develop business and technical processes that can leverage banking capabilities such as auto-decisioning and risk-based pricing. As part of process design, we focus on finding opportunities to improve efficiency through automation.

Credit infrastructure

We help you design a risk rating methodology, including grades, scales, definitions, and scorecards that meet the requirements of your products and lines of business.

Technical infrastructure

We help you design and then develop future technical infrastructure, including modeling capabilities, the risk rating platform, reporting, and integration. Our team brings extensive experience with developing, validating, and/ or operationalizing probability of default (PD) and loss given default (LGD) models, as well as developing and testing risk rating platforms. 

Organizational change management

We work with your institution to customize a rollout strategy designed to optimize adoption rates and mitigate risks. This can include updates to existing policies and procedures, as well as relevant user guides and training. 

Program management

We provide program management expertise, leveraging extensive previous DRR experience and understanding of best practices to avoid typical implementation pitfalls.

Faster implementation—with greater benefits

With significant DRR implementation experience and a proven approach, West Monroe can help your institution implement a sound DRR process faster and with fewer complications. That accelerates your bank’s path to the benefits of being able to evaluate your credit portfolio through a sharper lens:

  • Enhance your underwriting process through more objective, accurate, and granular credit risk rating capabilities
  • Unify your bank’s risk paradigm across lines of business and products
  • Strengthen risk management by recognizing problem credits as they begin to deteriorate and by improving visibility into portfolio trends w Increase efficiency and market competitiveness through new capabilities such as auto-decisioning and risk-based pricing
  • Calculate reserves more accurately, potentially freeing money for revenue-generating investments
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