FuriousBanker: The Credit Detox Challenge

FuriousBanker(TM) helps you learn risk management concepts in a fun and engaging way. This educational game series for mobiles and tablets is developed by Open Risk to enable modern interactive elearning for people working (or aspiring to work) in financial risk management.

The first episode sees FuriousBanker facing The credit detox challenge:

Game instructions for FuriousBanker:

  1. You Objective: You inherited a pretty toxic credit portfolio and your objective is to reduce the concentration, even while improving your profitability.

  2. Your portfolio: The largest exposures of your current portfolio are shown on the right (cyan) column. The length of the bars corresponds to exposure size. The rest of the portfolio does not contribute to concentration and is not shown. To see each large loan’s expected loss and credit spread simply select the loan.
  3. New loans: You can see a new loan proposal on the left (green) column. If you like the new loan you can accept it and thereby replace the currently selected loan. Your individual loan limit is 1 bln, so be careful with that money! Reject the proposed loan to get a new proposal. You have an limited supply of new loans per season (100) so use them wisely!
  4. Metrics:
    • The profitability of your portfolio is the difference between what you earn on each loan and what you expect to lose (on average), your expected loss. This is the so-called “ex-ante” profitability. It is shown as percentage of your total portfolio size.
    • The concentration risk measure is based on the HHI index. A portfolio with large concentrations of expected loss with have a larger index.
    • Your game score combines profitability and concentration so you will need to manage both to achieve your detox targets.
  5. Your Targets: You need to detox your portfolio (reach a score of at least 600) within a limited time, or otherwise face rejection and the wrath of the regulators!

Good luck FuriousBanker, show the world what you can achieve!

The game concepts and logic are directly derived from realistic concepts and tools used in practice (but may have been simplified and/or dramatized). Learn more about risk at the Open Risk Academy.

Beta Testing

If you would like to beta test this and future apps produced by OpenRisk, join first the Google group:

furiousbanker@googlegroups.com

and then follow the Play Store link to download the app

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