In the wake of the recent banking crisis, financial regulators will be testing the adequacy of the risk rating methodology as part of a sound Credit Risk Management Program when they visit your bank.

Your institution needs to establish and maintain a risk rating methodology that is both objective and subjective based on industry standards and current economic conditions, and that addresses more than just the standard measures typically used to evaluate credit risk.

Young & Associates, Inc. is pleased to introduce our Consumer Risk Rating Model and Commercial Risk Rating Model, designed to assist your financial institution in accurately identifying and measuring the credit risk of individual loan transactions. These loan risk rating models will provide a consistent rating methodology that can be applied across the bank and can be customized to fit your bank’s specific underwriting criteria!

Consumer Risk Rating Model (#279) - $395

Our Consumer Risk Rating Model analyzes all 3 C's of Credit (Capacity, Character, Collateral, Capital, and Conditions) for individual consumer loans.

• Objective - Benchmarks criteria against industry standards (e.g. credit scores, debt-to-income).

• Subjective - Provides flexibility to select certain criteria and assign a subjective rating, as well as to add comments to account for circumstances you deem important and appropriate regarding the credit. .

• Easy to Understand - Color-coded for easy interpretation of results. Includes a weighted "Composite" risk rating to determine the loan's overall credit risk to the institution.

• Support - Updated annually to adjust industry benchmarks or changes in regulatory expectation.

* Annual update will become available at the end of the 1^st quarter of the following calendar year ($100 per year)*

Requires Microsoft® Excel 2003 or higher.

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