Overview of Credit BASELine Modules

1. Data Mining - in the current client base to identify potential new lending opportunities (eg Headroom Report).

2. Customer financial analysis – input, store and analyse customers’ periodic financials and serviceability details.

3. External Credit Rating of customers’ financials – using automated link to risk model.

4. Internal Credit Risk Grading System (CRGS) of customer - tailored to individual financial institution, potentially using external rating, serviceability and behavioural criteria.

5. Deal entry and risk adjusted pricing - new deal is entered and priced based on preset parameters relating to security coverage and credit worthiness (per CRGS).

6. Loan application – A MS word template populated by Baseline and then completed by lending managers.

7. Deal Pipeline Tracker – tracking potential deals through until approval, as performance measure (hit rate analysis etc).

8. Annual Review Prioritization – using risk factors such as LVR and last credit rating.

9. Credit Risk Quantification – calculate Loss Given Default (LGD) and Expected Loss (EL) based on LVR, security type, EAD, Recovery Rate and Probability of Default assumptions by client and connection.

10. Portfolio Scenario and Stress Testing - to test impact on LGD and EL and other key risk measures at portfolio level, to test adequacy of provisioning and reserve requirements and for other analytical purposes.

11. Portfolio Reporting Tools – standard Board/ALCO/senior management reporting capability (eg against limits, slice and dice etc) using Business Intelligence tools on intranet and/or paper based.

12. Dashboard Controls – customer and portfolio dashboards provide one-stop review with drill-down capability to full detail.