ASQI Systems

Credit Risk Assessment using Artificial Intelligence and Big Data

ASQI Systems

We have built on the overall forecasting engine of ASQI Advisors to specifically evaluate and price credit risk of companies in India. We do this by predicting the probability of default of a company over the next 1 year.

We also forecast the probability of upgrade/downgrade in the credit rating of a company. The analysis extends to sectors as well where we forecast the sector-level frequency of defaults in the near future.

The approach of ASQI Systems is aimed at addressing following shortcomings of the conventional credit rating business.

  • Conflict of interest in the revenue model where borrower pays for credit rating.
  • Sluggishness of rating updates – real world deterioration of companies happens too fast for lenders to wait for a rating change to reflect it.
  • Over-reliance on company-provided data and inadequate use of alternate data.
  • Over-reliance on human-driven models based on first principles and inadequate use of cutting-edge technologies like artificial intelligence, machine learning, agent-based models and control systems.

Our Approach at ASQI For Credit Risk Assessment and Pricing

Our approach in a nutshell

The relevance of alternate data – “All data is credit data!”

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