IQ Financial Systems has granted an exclusive licence on its Default Filter credit risk management software to Standard & Poor’s. The licence will first be operative in Asia, says the ratings agency, in response to high demand for credit risk advisory services in the region.
The licence has been taken out by S&P's Risk Solutions group, which was formed in January 2001 with the aim of broadening the company's participation in credit markets beyond ratings.
Roy Taub, executive managing director, Standard & Poor’s Risk Solutions says a combination of IQ Financial Systems’ credit risk management software, coupled with Standard & Poor’s expertise in credit risk analysis, will help managers implement more sophisticated methodologies in the identification and measurement of credit risk.
"Record levels of defaults, continuing global economic slowdown and the proposed changes to the Basel Accord are causing risk managers to place even greater focus on credit risk management," he adds.
Default Filter was introduced commercially in 1999 and is currently used by 14 financial institutions throughout Europe and Asia.