OpenNPL

Reading Time: 2 min.

Open Credit Portfolio Management with openNPL

openNPL Logo

Credit Portfolio Management (CPM) denotes a set of principles, tools, processes that underpin the management of Credit Portfolios (collections of credit assets). It is a domain and activity that forms one of the cornerstones of sound financial / economic systems.

The defining characteristic of Credit Portfolio Management activities is that Credit Risk is assessed and managed not on a standalone basis but in an aggregate, portfolio, setting.

The openNPL architecture is a cloud based framework that supports credit portfolio management activity using an entirely modern approach. openNPL supports all high level objectives of CPM:

  • Provide portfolio information (help assess the current state of the portfolio)
  • Help guide the origination of credit assets (help the formation of a future portfolio)
  • Improve the portfolio structure and reduce concentration risk
  • Help implementing and managing the risk appetite (setting and monitoring relevant risk limits)
  • Support the management of financial and/or other organisational objectives

Supporting the above requires capable, up-to-date data, models and tools that are fully embedded in the organization. Here is where openNPL aims to make a difference:

openNPL Benefits

Powerful cloud infrastructure, modern databases, sophisticated algorithms and machine learning change how many organizational processes are carried out and Credit Portfolio Management is no exception. The openNPL platform allows you to manage credit portfolios using the best modern technologies.

With openNPL you can:

  • Use public or private cloud instances to deploy your CPM framework for maximum flexibility
  • Bring together Open Data, your own Portfolio Data and powerful Risk Algorithms
  • Derive new insights using cutting edge visualizations

Developed with a Compliance First Mindset

A compliant risk architecture has never been more important in the financial services industry. Compliance is not a box-ticking exercise but rather ensuring the organization has fit-for-purpose behaviors, processes and tools to fulfil its mission. In the context of credit portfolio management compliance requires significant investment in data and model risk management and associated audits.

openNPL brings you right out of the box:

  • Transparently documented Linked Models
  • Provenance and tracking of Risk Data
  • Full Audit of Calculations

Highly modular and expandable to serve your needs for the foreseeable future

Piping

A Flexible and modular architecture based on the groundbreaking Open Risk API. An open standards based architecture is a pre-requisite for evolvable digital infrastructure that adapts to user requirements rather than the other way around.

openNPL allows you to:

  • Connect databases and model servers to meet evolving portfolio management challenges in a
    scalable and future-proof way
  • Integrate your existing systems and tools through well-defined semantic API's

Integrate Open Source Libraries

The cloud is based on open source technologies like Linux, powerful model databases like mysql, postgres are open source, machine learning is developed around open source communities (pytorch, tensorflow). These secular developments on how digital infrastructure is developed reshape also how risk management and credit management is pursued.

Leverage the enormous power of the open source movement to reshape your CPM operations:

  • Benefit from our growing collection of Open Source Risk Models
  • Extend openNPL with your (or third-party) Open Source libraries

Get in touch to explore how openNPL can help you reach your CPM objectives!

Send us an email at info@openrisk.eu