About Risk Solution Network
Risk Solution Network AG (RSN) is a subsidiary of Swiss cantonal banks based in Basel, Lucerne, and St. Gallen. The organisation serves as a leading outsourcing structure for credit-risk management, providing over 30 banks with tools for measuring and validating credit risks through financial analysis, rating models, LGD concepts, and pricing frameworks.
RSN maintains a common data pool supporting model enhancement and validation, alongside tailored services including reporting and benchmarking. The platform enables member banks to exchange knowledge, share experiences, and coordinate representation toward external stakeholders.
Starting position
RSN set out to optimise its rating model by identifying the key performance indicators and qualitative factors — drawn from financial analyses and default data — that most reliably predict long-term company performance, not just short-term risk.
Solution
Step 1 — Service project: optimising the rating model
Prospero enhanced RSN’s rating processes using DetectX® Credit Risk Rating. The challenge involved identifying scoring processes that improved Gini coefficients and ROC curves while respecting RSN’s predetermined constraints.
Step 2 — Internal use of DetectX® Credit Risk Rating by RSN
RSN staff completed three days of training to use DetectX® Credit Risk Rating for creating, validating, and calibrating rating models in-house.
The DetectX® Credit Risk Rating solution
The platform enables Basel III requirement implementation in secure, consistent, and compliant ways. Through a learning process during model creation and validation, the system identifies error-minimised rating models with maximised separation power. Users can simulate risk strategies and optimise credit-business operations using minimal attributes for transparent reasoning — and all activities are tracked and recorded for audit.