About CreditKernel
We provide opinions on a counterparty's 12-month probability of default.
Our Story
Mission
Empower businesses to identify, estimate, and communicate counterparty credit risk.
Vision
Optimize credit risk in the simplest way.
Values
Transparent, actionable, efficient.
Name CreditKernel
A kernel is the essential foundation of a computer's operating systems (OS). It's the core that provides services for all other parts of the OS.
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We apply this concept to establish the foundation of counterparty credit risk; identify, estimate, and communicate.
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Identify - Counterparty's operating in higher risk industries, with fewer years in business, with lower revenues and margins versus industry peers, with higher levels of leverage compared to industry peers, and with minimal liquidity cushion, carry a higher estimated probability of default.
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Estimate - The models output is a 12-month probability of default and expected credit loss (ECL). Both are used to set-risk based pricing, distinguish varying borrower credit quality, and reserve capital.
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Communicate - Address and mitigate risk effectively by proposing actions that align with your organization risk appetite. Establishing risk thresholds builds a risk aware culture that allows you to focus on higher limit, higher risk deals.
Capabilities
CreditKernel did not invent the credit risk model, nor are we trying to reinvent the wheel.
See how we identified gaps in the marketplace to improve the current industry offerings.