There’s No Such Thing as “Standard” Risk Management in Commodities
Companies Need Expanded, Specialized Credit Functionality
All traditional CTRM softwares come equipped with credit risk management modules that give commodity- and energy-trading organizations basic, credit functionalities. They all work pretty much the same way. Standard functionality allows users to monitor and manage counterparty contracts and set credit limits and secure collateral arrangements. Unfortunately few stakeholders in commodities markets perform only basic credit risk tasks and their needs extend far beyond the standard functionalities even the leading CTRM platforms can deliver.
Evolving Risk Requires Extended CTRM Functionality
In a world rife with geopolitical upheaval, supply chain disruptions, whiplashing prices, and increasing security challenges, commodity suppliers, brokers, distributors, and investors require a comprehensive solution for managing credit risk. Value Creed has developed a suite of extensions as part of their Expertise on Demand solutions that can be implemented within leading CTRM systems that both enable more robust credit, valuation, and counterparty analysis and leverage multiple data sources to perform enterprise-level forecasting for evaluating risk based on clients’ specific business models and objectives.
Value Creed’s optimized custom credit query processes can improve execution time by 25% to 40%
Credit Functionality Beyond What the CTRM Platform Provides
Value Creed enables more robust credit risk analysis, critical in an era of supply disruption, geopolitical upheaval, ransomware, and volatile pricing:
Value Creed brings its expertise and experience to bear to ensure the credit risk functionality extensions and adjustments are incorporated into all the company’s processes. We undertake comprehensive testing and scenario development to demonstrate that all data calculations are correct and current so all applications are performed using a single accurate, uniform version of the company’s positions:
CTRM Extending Credit Functionalities Testing for Key Reports
Value Creed’s CTRM Credit Functionalities Testing Covers
- Balance of month
- Available credit
- Credit violations
- Total expected exposure
- Mark to market
Our Proven Process
Interview credit analysts, traders, and other end-users of the CTRM platform to determine what additional functions they would like to gain. Uncover any instances where data gaps may exist or external platforms do not integrate with the CTRM credit risk management module.
Determine the best approach to satisfying these requirements – table extension, data integration, decision engines, etc.
Write custom code and queries to enable precise data retrieval, expedite quantity and position updates, and speed query performance by 25 to 40 percent. These upgrades may also point to areas the CTRM platform may be adjusted to work smoothly with credit data sources.
Comprehensive systems testing and adjustments to show that changes are accessible by all platforms and data are consistent, accurate, and up to date. Value Creed then demonstrates the new functionality, conducts user acceptance testing, and initiates go-live with ongoing support.
Dependable, Customer-first Solutions
Commodity-trading enterprises rely on Value Creed to deliver credit risk management extensions and other CTRM upgrades online quickly and efficiently. Our dedicated team of experienced professionals and our deep understanding of sophisticated technology provides the specialized insights their IT departments need to make the most of their budgets and in-house skills.
Ready to Get Started?
Contact Us For More Information