Configuring risk groups

From the Risk Groups sub-tab of the Credit Risk tab of the Profitability Configuration page in RPPS, you can add risk groups and assign risk rating types. For example, you may consider mortgage loans as a single risk group. Using this tab, you would assign the specific risk rating type criteria that you created in the Risk Ratings tab to your mortgage loans risk group.

NOTE: Rather than allocate risk at the product level, RPPS guides you to assign the product to a risk group, because multiple products typically are grouped by product characteristics, and all products in the same group have the same allocation rate.

TIP: The name of your provision risk group must be a unique value up to 50 characters. A product may only be assigned to one provision risk group.

Adding or modifying a risk group

To add a Risk Group:

  1. In the Provision Risk Group column, at the far-left of the page, click + Add New Risk Group.
  2. In the empty text box that appears, enter the name of the Risk Group.
  3. In the Risk Rating Type drop-down, select the type.
  4. In the top-right of the page, click Save .

NOTE: The For Pricing Only column depends on the source of your data. If you import data from another source, such as Axiom, click the For Pricing Only toggle to change the option from No to Yes. This ensures that the system only uses the risk rating for pricing.

Deleting a risk group

To delete a risk group:

  1. Click the box in the column with a trash can icon.
  2. In the top-right corner of the page, click Save .