Creating a risk indicator

Risk indicators are factors that contribute towards risk calculation. A weightage is assigned to each risk indicator and based on the value of factor a score is assigned. A weighted score for each risk indicator is calculated and the summation of all the weighted scores is known as the final Credit Risk Rating (CRR).

About this task

A user chooses risk indicators based on the kind of risk that he wants to calculate. If he wants a general risk score, such as CRR, demographic indicators are used (for example, what does an entity do, where does the entity live, and so on). If a user wants to calculate financial risk, he might use financial indicators, such as the number of large transactions, number of defaults, yearly after-tax income, and so on.

To create a risk indicator:

1. Click the Create Risk Indicator icon in the toolbar on the upper right of the FCI Design Studio:

   

2. Select Risk Indicator and enter a name, description, risk source, and risk category.
   
3. Click Create to create a new risk indicator. You can also add a new property.
   

   After creating and saving the risk indicator, the new indicator appears in the following pane.