Sageworks Risk Rating

Risk ratings are a foundational element of credit and portfolio risk strategy. From loan pricing to stress testing and allowance calculations, accurate risk ratings are crucial for making sound risk management decisions. Sageworks Risk Rating allows banks and credit unions to use a single, dynamic and comprehensive risk rating methodology for the entire loan portfolio, identify problem loans early and gain insight into portfolio credit quality.

• Create a standardized loan rating system with customized factors and weightings
• Produce extensive reporting to show all risk ratings and rating changes
• Add custom qualitative metrics to risk ratings
• Customizable templates for any single or dual risk rating
• Save customer templates with customized benchmark ranges

• Create a standardized loan rating system with customized factors and weightings
• Add custom qualitative metrics to risk ratings, scored on a scale from poor to excellent
• Use individual metrics, like a company’s industry performance, when risk rating a Group Use Global metrics, such as global DSCR, in individual entity ratings
• Require comments and justification for changes to the factors in a risk rating Implement a dual risk rating model based on the probability of default and loss given default
• Access the most up-to-date rating, as the risk ratings update when new data is entered into Sageworks Automate thorough documentation showing each factor’s calculation, the weights assigned to each factor, the ranges used to assign a rating and the calculation of the overall score
• Produce extensive reporting to show all risk ratings and rating changes, which can all be exported to Microsoft Excel Define an approval process for loan officers to follow
• Define an approval process for loan officers to follow
• Save custom templates with customized benchmark ranges
• Annualize financial-statement ratios if the period is less than one-year Rate guarantor credit score, as well as industry metrics for a business score based on Sageworks’ industry data
• Show objectivity within risk ratings due to the consistent and documented process
• Leverage advanced reporting Utilize a single or dual risk rating model based on institutional needs