Search: "credit risk"

Aggregating Risks To Net Worth—The Credit Risk Component

During a recent education course, we fielded the following question:  “How do you develop a proxy for a worst-case loan loss assumption when aggregating risks to net worth?” This is a great question and it stimulated lively discussion.  While there is not one right way, the following method has been valuable in developing concentration risk […]

Are Investments Now Yielding More Than Indirect Autos?

For many credit unions, taking a serious look at indirect auto profitability is long overdue.  Two years ago it was easier to make the argument that indirect autos were a better financial alternative than a like-term investment.  Now, the issue is more complicated as investment yields have increased far more than auto yields in the […]

CUES Webinar – Advance Management of Your Lending Economic Engine

Webinar focuses on how to evolve understanding and communication of risks so that decision-makers can be more forward-thinking and agile in managing their lending economic engine.

FinTechs vs. Traditional Lenders – Is There a Difference?

TransUnion recently released a study comparing FinTechs to other lenders, and used personal loans issued between 2014 and 2016 as the basis for the study.  The study’s objective is to answer the question, “Are FinTechs different from other lenders?”  Interestingly enough, this is a question credit unions have been speculating on for years in an […]

Recent Uncertainty Highlights The Importance of Evaluating Strategic Net Worth Requirements

The rapidly changing competitive environment and recent natural disasters are reminders of the importance of evaluating strategic net worth requirements. A key component to understanding strategic net worth requirements is taking a deliberate approach to understanding aggregate risk.  In a previous blog post we outlined an approach to help with this process. Two types of […]

Start typing and press Enter to search