Risk Advisor Product Overview | Judgmental Credit Rating System | How Screens Work
Moody's KMV Risk Advisor's™ principal output is given in the form of assessments which are displayed graphically using meters. Visual meters have the advantage that:
- they can show both the assessment and the certainty attached to it
- they can be used to derive an assessment even if some information is missing
- they can be used to combine and assess factors of a different nature
Meters represent internal assessments in a range from 0 (Unacceptable) to 100 (Excellent).
Meters also display the system's analysis of the certainty attached to any given assessment. Uncertainty can be introduced as a result of:
- missing data
- contradictory information
- the inherent imprecision of the items under assessment, particularly where these are subjective analyses
Meters use coloured bands to indicate the level of certainty attached to an analysis. The black band indicates at least 50% certainty. Add to this the grey band and the system's analysis is at least 90% certain. Where there is only a black band visible the assessment is at least 90% certain.
Using meters, an assessment of combinations of factors can easily be shown, even if the nature of the elements of the assessment is radically different, as shown in the example here.
Bank Scales
For display purposes, the internal 0-100 representation of assessments can be mapped to any scale according to the preferences of the client. If, for example, it is bank policy to show UNACCEPTABLE as 6 and EXCELLENT as 1, the numeric display that accompanies meters can be adjusted to map to this, the Bank Scale, as shown:
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