From a company-rating to an object-rating - The new concept of RaaS Risk Platform

In September 2019 we launched oplon Risk Platform 2.0, the new version of the RaaS (Rating-as-a-Service) platform for the automation of credit risk assessment process.

The new update improves the platform’ structure, as you can clearly see in the image below.

Well... it was designed by an engineer. 

Let’s have a closer look to oplon’s structure and discover the new functionalities.

oplon Risk Platform has a pyramid-like structure, conceived to ensure the maximum set-up flexibility.

The top position is occupied by the company you are analyzing. The 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). Lastly, analyses are divided into steps and provide different tools for risk assessment.

The number and type of each element are defined together with the customer when setting up the platform. This allows oplon to be fully customizable according to requests.

The first release is designed to provide in a few minutes a thorough evaluation of the counterparty’s creditworthiness and probability of default.

You are allowed to perform different analyses within the same folder, yet all related to the same company. Each analysis results in a credit score, but only one could be approved.

In oplon 2.0 we moved from a company-rating to an object-rating concept. That means that the subject of the analysis does not necessarily have to be a company, but it can be a bond, a project, or a whole portfolio.

2.0 required a new analysis architecture. The new update allows you to perform different analyses related to different subjects.

Unlike the previous version, you can now approve multiple analyses within the same folder, each of which contribute to the folder’s final assessment to the extent defined by the user.

The new structure further extends oplon’s functionalities and fields of application. Let’s go deeper.

Factoring

oplon 2.0 automates the whole preliminary investigation process. Thanks to the new structure, you can now perform credit risk analysis of both the assignor and the debtors within the same folder. The analyses contribute to the final evaluation assigned to the folder (with recourse or without recourse), allowing the Factor to quickly verify the entire operation’s risk profile.

Project finance

oplon 2.0 introduced the possibility to evaluate bonds, portfolios and projects. This makes the platform particularly suitable for the evaluation of project finance operation. Within a single folder you can perform analyses of the companies involved (both contractor and end-user), technical-scientific analysis of the project and expected cash flows simulation.

Private equity

With oplon 2.0, investment funds can assess companies’ creditworthiness in just a few minutes, analyze the economic and financial situation of the main shareholders and perform peer comparisons.

All the analyses can contribute to the eligibility assessment, to the extent established by the user.

In the next articles we will see oplon 2.0 case studies.