The Risk Control Module enables risk control officers to set, monitor and enforce risk control parameters across the Optalytic Suite. With the help of the Optalytic Integration Service, this module aggregates the biographical, credit and pricing information on loans in the existing loan portfolio as well as on the current loan prospects in the loan origination pipeline and enables users to create risk control policies for use in compliance reporting and in constraining trading activity.
Examples of potential criteria would include:
- percentage of a given loan which can be funded
- percentage of Fund assets which can be allocated to any individual loan
- state by state geographic concentration limits
- absolute loan size limits
- limits on the weighted average APR of a loan portfolio or sub-portfolio
- expected net loss rate limits based on a given loan pricing model
- percentage of loaned dollars invested in loans with certain credit criteria
As with all of the modules in the Optalytic Suite, the Risk Control Module can be used in conjunction with the Reporting Service to generate batch level and ad-hoc reports in Excel and PDF file formats for use off-line.