Temenos Lifecycle Management Suite - Origination Product Guide
Risk Models
| Administrator Guide > Loan Origination Overview > Defining Models > Risk Models |
Temenos Infinity provides dynamic assessment of an applicant or application’s risk through the use of business rules and risk tiers. Risk Models provide the ability to tie risk rules together to determine applicant risk, by allowing institutions to maintain the assignment of risk according to tiered system. Within the Risk Models page in System Management (System Management > Origination Loan > Risk Models), institutions are able to define and maintain a list of tiers which affect risk and pricing. Business Rules authored to asses applicant and/or application attributes are assigned to each risk model to determine the tolerances for risk tiers and ultimately affect pricing and creditworthiness.
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Prior to defining models, consider the lending policies and author the appropriate risk rules for each risk model being defined. For more information on rule authoring, refer to the Rules Management topic within this guide. |
One Risk Model must be assigned to each Sub-Product.
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The same Risk Model can be assigned to more than one Sub-Product. |
The Pricing Model topic includes the following attributes and instructions to assist administrators with creating, copying, and editing pricing models:
Models allow institutions to assign risk rules that affect the pricing and creditworthiness of each risk tier. From the models tab, administrators are able to create and maintain risk models. Each model contains General and Business Rule attributes.
The general attributes include the basic information pertaining to the risk models. This information includes the following fields:
| Fields | Description | ||
| Name | Enter the name of the risk model. | ||
| Description | Enter a brief description of the risk model. | ||
| Active |
Select the check box to indicate the risk models is active.
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Business Rules enables administrators to select the appropriate rules which determine the risk tier of each applicant. Within the business rules tab, a multi-grid containing the following tables which control the assignment of risk rules:
| Table | Description |
| Available | Contains a list of all active risk rules and decision tables that have not been assigned. Upon assigning a rule to the model, the rule is removed from the available list. |
| Assigned | Contains a list of all rules that have been assigned to the risk model. |
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For more information on rule authoring, refer to the Rules Management topic within the administrator guide. |
To assign risk rules, move the appropriate rules from the Available box to the Assigned box.
To create a new Risk Model:
To copy a risk model:
To edit a risk model:
Tiers enables institutions to define the different levels of applicant risk. From the tiers tab, administrators are able to create and maintain risk tiers.
The defined tiers are available in risk rules. While defining risk rules, authors may define the conditions that determine how applicants are sorted into the defined tiers.
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For more information on rule authoring, refer to the Rules Management topic within the administrator guide. |
Tiers contain general attributes that include the basic information pertaining to the risk tiers. This information includes the following fields:
| Field | Description | ||
| Name | Enter the Name of the Tier. | ||
| Description | Enter a Description (if needed). | ||
| Rank |
Enter the numeric rank of the tier. This field enables institutions to quantify risk tiers with numeric values in order to illustrate high, low and average values. |
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| Active Checkbox |
Select the check box to indicate the risk tier is active.
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Once risk tiers are created, they are able to be linked to risk models with rules. |
To create a new Risk Tier:
To edit a risk tier:
Creating Risk Models