Michigan based CUSO CU*Answers, recently announced a new feature of its flagship core processing platform CU*BASE^®, to assist credit unions in analyzing concentration risk in their specific loan portfolios. Audit Link, the compliance division of CU*Answers Management Services has been working with credit unions for the last 24 months and performing concentration risk analysis and modeling in accordance with NCUA requirements. 

“We build the model, perform the analysis and shock testing, and then help the credit union derive policies and procedures for monitoring this very crucial area of risk management,” says Jim Vilker, VP of Professional Services.  “With all that experience under our belts we then took the knowledge gained and translated it into push button analytics on the core system, “said Vilker. The new analytical tool allows credit unions to build specific loan segments and then goes on to analyze the specific attributes of that segment such as default rates, risk score trends, loan to value, and member demographics just to name a few.  The goal is to put the analytical tools at the fingertips of the decision makers without having to undergo expensive and time consuming engagements with consultants and third party tools.  “In a matter of seconds a risk manager on the CU*BASE platform can review all areas of credit risk associated with all segments of the loan portfolio and understand trends that are developing in a very proactive manner”.