Announcing RaaS Risk Platform 2.0

Today we announce something that means a lot to us: the new oplon Risk Platform.

The new update extends oplon functionalities and fields of applications. Without further ado, let’s find out what’s new in oplon 2.0.

oplon Risk Platform was launched on the market in 2018. The platform is the result of a simple yet effective idea; to embed modefinance’s Artificial Intelligence rating methodology, MORE, in a comprehensive and fully customizable solution for credit risk assessment.

In other words, oplon provides a powerful array of AI-based analysis tools that automate the whole rating process, allowing large corporates, credit lenders (banks, investment funds, credit consortia, factors, and so on) and investors to develop a fully digitalized procedure for risk assessment, customized on their needs.

The first release was designed to provide in a few minutes a thorough evaluation of the counterparty’s creditworthiness and probability of default. We opted for a pyramid-like analysis’ architecture, where the top position is occupied by the company to be analyzed. Each company can be associated with different folders (bank folder, supplier folder, customer folder, etc.) each of which can include different analysis types (complete analysis, loan analysis, forecast, and so on). The analyses in turn include different risk assessment tools for risk measurement and scenario forecast, such as scores, sensitivity analyses, debt-capacity, cash flow analyses, qualitative questionnaire, etc..

To ensure adaptability to customers’ proprietary risk management policies, both the analysis types to be included in each folder and the folder themselves can be defined when setting up the platform.

Since its release, the platform has achieved significant results. In less than a year, oplon has become part of the risk management process of banks, credit consortia, large corporates and insurance companies. However with the broadening of the range of users, we realized that oplon was no longer able to meet all the specific needs of all our customers. Not a minor issue, since oplon aims at providing a personalized risk assessment procedure.

We therefore decided to move from a “company-rating” to a “object-rating” concept and give the platform a new analysis architecture to expand its functionalities.

In oplon 2.0 the subject of the analysis does not necessarily have to be a company, but can be a bond, a project, or a whole portfolio.

Unlike the first release ­­– where users were allowed to perform different analyses within the same folder, though all related to the same company, and only one could be approved to define the rating assessment – the new update allows to approve different analyses that may refer to different subjects, without overlap, and to compare different companies within the same folder. The final assessment assigned to the folder does no longer derive from a single analysis workflow, but can be the result of the contribution of different analyses, on different counterparts.

The new update makes oplon 2.0 suitable for several purposes, such as for factoring purpose.

Factoring operations are part of corporate lending activities and meet companies’ short-term financial needs. The risk analysis should therefore focus on the evolution of the supplier/customer relationship, as a deterioration of the debtor’s financial situation increases transferor' insolvency probability.

Only the monitoring of the financial situation of both transferors and debtors allows to promptly revise the lending strategy to avoid losses.

In oplon 2.0 users can perform analyses on all the companies involved (debtors/transferor) within the same folder and assess risks of recourse and non-recourse factoring operation.

Only the results of the approved analyses contribute to the final evaluation assigned to the folder.

The whole process takes just a few minutes.

To try oplon Risk Platform, contact us at info@modefinance.com or click here for a free trial.