Prevent risk with the ForST model

Portfolio simulations and estimate of the evolution of creditworthiness
to measure the economic impact of unexpected events

How to prevent credit risk

ForST is an analysis tool designed to process portfolio and/or budget simulations, up to 5 five years, according to three different scenarios (positive, neutral and negative), and to estimate the creditworthiness' evolution of an analyzed entity.

Thanks to Artificial Intelligence and data analysis technologies, it allows you to simulate the financial effects on the basis of management decisions, highlighting their effectiveness in terms of financial requirements, and their hedging possibilities. Used to assess the evolution of companies' performance and test their resilience to any financial shocks on an individual basis, internal or due to events independent of the company, it has been further developed following the recent crisis to respond to the global need for models credit risk forecasting systems that are increasingly performing and able to respond in real time.

Recently, the clustering and analysis techniques used by ForST have further evolved and tailored on the principles of Nowcasting, both for the sector and for the company. In this sense, evolution has introduced new variables on which users can work independently to perform stress-test analyzes: the so-called drivers, whose inputs determine the set that the model will select as a reference benchmark, to predict the most probable evolutionary path of the company that adopts the technological solutions of modefinance.

Nowcasting

Initially used by companies to evaluate the evolution of their performance and test the resilience to possible financial shocks on an individual basis, internal or due to events independent of the company, ForST has been further developed following the recent crisis to respond to the global need. credit risk prediction models that are increasingly performing and able to respond in real time.

Recently, the clustering and analysis techniques used by ForST have further evolved, allowing you today to concretely adopt a Nowcasting model.

An effective model

  • joint data processing;real-time updating;
  • the ability to exclude the noise component;
  • the conjunction of the tests with the evaluation results of the rating, so as to give a perspective of creditworthiness.

Unlike long-term forecasting, based on measurements typically on a quarterly basis (and beyond), nowcasting represents the science of very short-term economic forecasts: the growing availability of data has led to the development of tools capable of to aggregate them and extract a greater amount of value, with the aim of structuring real trends of economic analysis, in real time.

In this sense, the evolution of ForST has introduced new variables on which you can work independently to perform the stress-tests: the so-called drivers, whose inputs determine the set that the model will select as a reference benchmark, to process the most probable evolutionary trend of the company.

I requisiti che garantiscono l’efficacia del modello

  • l’elaborazione congiunta dei dati;
  • l’aggiornamento in tempo reale;
  • la capacità di escludere la componente di rumore;
  • la congiunzione dei test con i risultati valutativi del rating, così da dare una prospettiva del merito creditizio.

Responsive, easy to understand
Market Reactive MORE score

Not only software and advanced technology: sometimes, the need is to have an immediate evaluation, an intuitive, dynamic and highly performing score.

From the continuous and fruitful collaboration with Bureau van Dijk, and the economists of Moody's Analytics, the Market Reactive MORE score was born, a new perspective that:

  • is based on our MORE methodology;
  • adopts the founding principles and integrated into the advanced ForSt model;
  • adopts a marked sensitivity to global macro-economic and socio-economic changes;

    Why choose the Market Reactive MORE scoreWhy choose the Market Reactive MORE scorein order to provide you with a new, reactive and constantly updated evaluation, which is as accurate as possible.

This gives you a new score that helps you evaluate not only the resilience of businesses, but also the response to sudden changes and the ability to evolve against unexpected events.

Choosing the Market Reactive MORE score

The recent pandemic, and the consequent economic crisis we are experiencing, require innovative tools and truly effective new perspectives, to face the present and the future in the daily management of your business.

The assessment and management of credit risk have matured a lot over the years, becoming the fulcrum of yours, as of every business: bringing all the stakeholders of the economic-financial world to the attention of their essentiality, they have become basic activities for business strategy.

In certain situations, it is crucial to understand not only the resilience of a company, but also the impact of external events that affect market conditions.

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