The implementation of an enterprise wide credit risk management solution will enable organisations to reduce market and credit losses by providing a clearer understanding of credit risk across the organisation. There are a number of significant benefits RAZOR offers compared to alternative credit risk management solutions:

Benefit	Detail

Reduction in Credit Losses	RAZOR’s comprehensive limit and excess management framework identifies limits that are in excess intra-day and ensures that the correct people are notified immediately to take appropriate action. This, combined with a consolidated view of exposure enables prompt action to be taken reducing the potential for credit losses.
Reduction in Credit Exposure	RAZOR’s calculation methodology results in significant reductions in credit exposure and limit utilisation which benefit from economic offsetting and netting. Exposure reductions of 60% or higher can be realised using Monte Carlo simulation, reducing credit utilisation and freeing up credit lines for profitable trading opportunities.
Regulatory Compliance	RAZOR’s Market Risk module is fully compliant with the Basel Market Risk regulatory requirements, enabling a Bank to implement an internal Value at Risk based risk model to achieve regulatory compliance. Razor also supports the Basel II Credit risk requirements including the July 2005 Basel II amendment for Trading activities.
Extendable Analytics	All RAZOR’s analytics can be easily replaced or extended by the customer. This enables a customer to use their own pricing or simulation models, and be self-sufficient in extending the system for new products.
Single Customer View	Credit risk for a bank’s Trading and Commercial Lending books can be measured and reported in RAZOR. This provides organisations with a single view of credit risk across the organisation, providing an accurate and timely view of risk and significantly reducing the costs, time and operational risk associated with the consolidation and reporting of exposures from multiple applications, thus satisfying a key element of the Basel II directive.
High Performance	RAZOR’s high performance architecture enables organisations to measure risks as they occur rather than after the event. Pre-deal checks complete in less than 0.1 seconds preventing unauthorised dealing. Exposures and limits are updated intra-day whenever portfolio changes occur. RAZOR’s impressive calculation speed results from the use of distributed processing and other powerful optimisation techniques to reduce the computational overhead enabling accurate real-time credit risk calculation and limit management.
Reduced risk management infrastructure and operational costs	Fully integrating the calculation and reporting of market and credit risk within a single application provides enormous cost, implementation and operational benefits. Integration costs, implementation and operational risk are reduced by using a single source of trade, market data and analytics. Hardware costs are reduced by including market and credit risk within a single hardware platform. Operational efficiency is increased as only a single application requires maintenance, upgrades and support. Additionally, analytics for market and credit risk are shared providing consistent risk results and an easier migration path for new products.