Loan Risk Rating Models - Young & Associates, Inc. Community Bank Consultants

Loan Risk Rating Models
Commercial Risk Rating Model Consumer Risk Rating Model Complete Package
In the wake of the recent banking crisis, financial regulators will be testing the adequacy of the risk rating methodology as part of a sound Credit Risk Management Program when they visit your bank. Your institution needs to establish and maintain a risk rating methodology that is both objective and subjective based on industry standards and current economic conditions, and that addresses more than just the standard measures typically used to evaluate credit risk.
	Young & Associates, Inc. is pleased to introduce our Consumer Risk Rating Model and Commercial Risk Rating Model, designed to assist your financial institution in accurately identifying and measuring the credit risk of individual loan transactions. These loan risk rating models will provide a consistent rating methodology that can be applied across the bank and can be customized to fit your bank’s specific underwriting criteria!
Commercial Risk Rating Model (#277)
Our Commercial Risk Rating Model analyzes all 5 C's of Credit (Capacity, Character, Collateral, Capital, and Conditions) for individual commercial loan transactions. Available for 7, 8 and 9 Risk Rating Scales. Objective - Benchmarks criteria against industry averages by NAICS. Subjective - Provides flexibility to select certain criteria and assign a subjective rating, as well as to add comments to account for circumstances deemed important and appropriate regarding the credit. Cutting Edge - Measures Conditions (industry risk) based on economic data obtained by Young & Associates, Inc. Easy to Understand - Color-coded for easy interpretation of results. Includes a weighted "Composite" risk rating to determine the loan's overall credit risk to the institution. User-friendly - Easy-to-use navigation features makes grading commercial loans simple. Support - Includes 1 year of technical support. Annual Update - Optional annual update service to adjust industry benchmarks or changes in regulatory expectation ($200 per year). Annual update will become available at the end of the 1st quarter the following calendar year. Requires Microsoft® Excel 2003 or higher. $995 Click here to view a demo Click here to view sample reports Return to Top

Consumer Risk Rating Model (#279)
Our Consumer Risk Rating Model analyzes all 3 C's of Credit (Capacity, Character, Collateral, Capital, and Conditions) for individual consumer loans. Available for 7, 8 and 9 Risk Rating Scales. Objective - Benchmarks criteria against industry standards (e.g. credit scores, debt-to-income). Subjective - Provides flexibility to select certain criteria and assign a subjective rating, as well as to add comments to account for circumstances deemed important and appropriate regarding the credit. Cutting Edge - Based on current mortgage industry standards. Easy to Understand - Color-coded for easy interpretation of results. Includes a weighted "Composite" risk rating to determine the loan's overall credit risk to the institution. Support - Includes 1 year of technical support. Annual Update - Optional annual update service to adjust industry benchmarks or changes in regulatory expectation. ($100 per year). Annual update will become available at the end of the 1st quarter the following calendar year. Requires Microsoft® Excel 2003 or higher. $395 Click here to view a demo Click here to view sample reports Return to Top

Complete Risk Rating Package (#283)
Includes the Commercial Loan Risk Rating Model (#277), and Consumer Loan Risk Rating Model (#279). $1,195 Return to Top


Young & Associates, Inc. PO Box 711 • 121 East Main Street • Kent, OH 44240 800.525.9775