Financial KPIs, Scorecards, Metrics » Banking

Credit and loan risk scorecard

admin — Fri, 13 Mar 2009 13:22:07 +0000

KPI Name: Credit and Loan Risk Balanced Scorecard Metrics

Customers also viewed: Financial Analysis Scorecards | Risk Management Scorecards Pack

Sample reports:

Some reports were generated with Balanced Scorecard Designer for the Credit and Loan Risk Balanced Scorecard Metrics KPI to show both – Balanced Scorecard Designer functionality and a part of KPI content:

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The Balanced Scorecard Designer software was used to create this KPI.

Description by authors:

Credit risk is the risk that an obligor fails to repay its debt, or that its credit worthiness may deteriorate. Credit risk is more difficult to model than market risk for several reasons. First, the lack of a liquid market makes impossible to price credit risk for a specific obligor and tenor. Second, true default probabilities can be determined by either inferring default rates based on observed historical experience of the public credit ratings, or by analyzing the default rate through a subjective credit approval process. Third, default correlations are difficult to observe or measure, making it hard to aggregate credit risk.

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Retail banking KPI

admin — Fri, 13 Mar 2009 13:21:13 +0000

KPI Name: Retail Banking Balanced Scorecard Metrics

Customers also viewed: Financial Analysis Scorecards | Crisis Management Pack

Sample reports:

Some reports were generated with Balanced Scorecard Designer for the Retail Banking Balanced Scorecard Metrics KPI to show both – Balanced Scorecard Designer functionality and a part of KPI content:

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Check Diamond Style Report sample.

Balanced Scorecard Designer Screenshot:

The Balanced Scorecard Designer software was used to create this KPI.

Description by authors:

One of the most widely used measurement framework among financial institutions and insurance companies is RAROC (risk-adjusted return on capital) based on economic profit or return-based metric system. This methodology was suggested by Tom Wilson of Mercer Oliver Wyman. RAROC is used to analyze risk-adjusted financial performance and provide a consistent view of profitability across businesses. RAROC is broadly defined as the ratio of risk adjusted return to economic capital. This use of capital based on risk improves the capital allocation across different functional areas of banks in which capital is placed at risk for an expected return above risk-free.

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Mortgage Credit KPI

admin — Fri, 13 Mar 2009 13:20:22 +0000

KPI Name: Mortgage Credit Balanced Scorecard Metrics

Customers also viewed: Real Estate Metrics | Passive Investments

Sample reports:

Some reports were generated with Balanced Scorecard Designer for the Mortgage Credit Balanced Scorecard Metrics KPI to show both – Balanced Scorecard Designer functionality and a part of KPI content:

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Check Diamond Style Report sample.

Balanced Scorecard Designer Screenshot:

The Balanced Scorecard Designer software was used to create this KPI.

Description by authors:

Credit scores help determine the type and size of the mortgage loan for which the consumer qualifies. The score is basically a summary of the consumer’s credit report, in the form of a numerical measurement that reflects his or her management of credit. Credit scores are based on the following information: consumer’s payment history, the amount of credit, creditor’s data, as well as any serious past problems with debts (for instance, liens, bankruptcies, collections, and judgments). The credit scoring process converts these and other factors into a single three digit number that aids in determining the likelihood the consumer will repay a loan on a timely basis.

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Credit card processing KPI

admin — Fri, 13 Mar 2009 13:19:36 +0000

KPI Name: Credit Card Processing Balanced Scorecard Metrics

Customers also viewed: Cost Management | Service Outsourcing

Sample reports:

Some reports were generated with Balanced Scorecard Designer for the Credit Card Processing Balanced Scorecard Metrics KPI to show both – Balanced Scorecard Designer functionality and a part of KPI content:

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Check Diamond Style Report sample.

Balanced Scorecard Designer Screenshot:

The Balanced Scorecard Designer software was used to create this KPI.

Description by authors:

The number of customers willing to pay for accepted products and services online is increasing every year. Therefore it is important for an organization to use online credit card payment solution along with traditional merchant accounts. It has been proven that businesses that except credit card payments typically have higher sales than those that do not accept credit cards. It also helps organizations establish a professional image and generate a feeling of trust among potential customers. Most businesses take advantage of a third party credit card processor, providing real-time processing capabilities, online virtual terminals for entering manual transactions, as well as the ability to set up recurring billing.

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Investment Banking Scorecard

admin — Fri, 13 Mar 2009 13:18:55 +0000

KPI Name: Investment Banking Balanced Scorecard Metrics

Customers also viewed: Passive Investments | Property Investment

Sample reports:

Some reports were generated with Balanced Scorecard Designer for the Investment Banking Balanced Scorecard Metrics KPI to show both – Balanced Scorecard Designer functionality and a part of KPI content:

Check Overview KPI Report sample.
Check Full HTML Scorecard Report sample.
Check Diamond Style Report sample.

Balanced Scorecard Designer Screenshot:

The Balanced Scorecard Designer software was used to create this KPI.

Description by authors:

Performance tracking constitutes a significant responsibility of organizational management. The task becomes all the more important when it is about Investment banking as striking a balance among the large number of services can make it difficult to follow the steps. However, equally true is the fact that no compromise can be made in the direction of performance assessment. The key is to use measurable, specific and actionable parameters to rely on.

The categories, which can help in this tracking task are- Financial perspective, Internal Operations Perspective, Risk Perspective and Growth Perspective.

Financial aspect can be had from KPIs like ‘fraction of investments, which gave ROI equal to or more than the expected value’, ‘Proportion of revenue contributed by each of the services’, ‘average rise in investment’ and ‘maximum drop ever experienced in ROI’. This will ensure maintaining a stable economic stand.

Risk can be evaluated via knowing the values for ‘Tier I capital’, ‘Capital Adequacy ratio’, ‘% of portfolios with fatter tails in their ‘return distribution’ and ‘number of instances when restructuring was done in the organization’.

Internal Operations can be measured through indicators such as ‘number of services offered’, ‘Frequency of revising performance evaluation and reward systems’, ‘Fraction of revenue contributed by the intellectual capital’ and ‘Number of alliances or joint ventures with -Global Top Players’.

The last perspective i.e. Growth can be known by keeping an eye on measures like ‘Rise in competitive position’, ‘rate of Expansion’, ‘% increase in the contribution by each service offered by the organization’ and ‘customer concentration ratio’.

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