Risk Assessment

Standard & Poor's Risk Assessment Services are a comprehensive suite of solutions for assessing credit risk that complies with Basel requirements, including a thorough evaluation based on credit and market risk implications, credit assessment, credit scoring, and quantitative modeling. The results provide institutions with predictive analyses and benchmarks that align with other institutions to better manage credit risk.

Risk assessment is an important, yet difficult, step in the risk management process. Once risks have been identified and assessed, the steps to properly deal with these risks are more formulaic.

art of the difficulty of risk management is that measurement of both of the quantities in which risk assessment is concerned- potential loss and probability of occurrence- can be very difficult to measure. The chance of error in the measurement of these two concepts is large. A risk with a large potential loss and a low probability of occurring is often treated differently from one with a low potential loss and a high likelihood of occurring.