MCG Energy’s Paragon Credit Risk Manager System (CRM) is the best credit risk management solution available. CRM combines state-of-the-art technology with a rich feature set for managing credit risk. Features and functionality include counterparty, contract, collateral, exposure management, advanced credit analytics, and credit scoring. Users can easily configure this highly flexible and user-friendly application to meet the nuances of each client’s credit risk requirements.

Paragon Credit Risk Management Software Details (PDF)

MCG Energy’s Hosted Data Services (HDS) merges data from ERM and all other MCG Energy software products into one hosted platform. HDS is a data warehousing solution for all MCG applications.

MCG Energy’s Paragon Credit Risk Manager

Paragon CRM encompasses the entire scope of credit risk management software for energy industry leaders. Users can easily configure this highly flexible application to customer preferences. They can create custom views of each screen to share with other users and leverage to create reports.

Key Features of Paragon Credit Risk Management Software

Workflow, Counterparty, and Contracts

Workflow Management – Defines workflow in the application to follow your organization’s corporate compliance, risk policy, and service level agreements. Assigns users to their tier of credit approval. Identifies the user or department responsible for the next task in a workflow process.
Counterparty Management – Stores all of your organization’s counterparty information as the system of record. Manages the entire counterparty process from onboarding to credit assessment and maintenance. Stores and reports on contacts, billing and notice addresses, related entities, and industry classifications. Covers credit ratings, limits and limit allocations, and tenor restrictions.
Contract Management – Manages contractual relationships including terms & conditions, trade agreements, credit support annexes, parent guarantees, and structured transactions. Allows users to easily define contractual parties, covered transaction types, and netting rights. Users can add unlimited user-defined fields for additional information. Allows scanned copies of agreements and other documentation to be attached to records and stored in the database. The application is a system of record for the contract revision process. Accepts data manually and from other upstream systems of record.

Collateral and Exposure

Collateral Management – Automates the collateral process from the margin call to the calculation of interest on collateral. Margin and interest calls can be emailed directly from the application on client configured templates that can be changed as needed. Manages letters of credit that can be linked to margin calls or trade-specific transactions. Tracks fees and limits associated with letters of credit issued by your credit facility minimizing credit support costs. Manages additional credit support of cash, prepayment, surety bonds, and credit insurance. Allows users to define an unlimited number of other collateral types and behaviors. Also enables users to manage parental guarantees and measure utilization.
Exposure Management – Real-time evaluation of available credit with a variety of calculations (60-Day Notional Exposure, Unbilled + Fwd Cash + Fwd, etc.). Accepts all fields generated from other systems with drill-down to exposure details at the systems’ granularity. Custom views of top exposures, top obligations, credit line utilization, available credit, and collateral requirements that can be saved per user or group, shared, and used in automated or ad-hoc reporting. Easy to read custom graphics for understanding daily credit position based on a variety of metrics. Includes tools to build robust single series or multi-series charts using modern drag and drop functionality.

Credit Scoring and Analytics

Credit Scoring – Unlimited custom scoring models for various counterparty types. Integration with various financial and market data sources including the SEC Edgar Online system, Dun and Bradstreet, Bloomberg, and others. An optional financial statement feed from xIgnite is available to monitor public company filings.
Advanced Credit Analytics – Monte Carlo simulation to evaluate transactions and determine potential future exposure at various confidence intervals, and the impacts of rating downgrades and migrations on collateral. CVaR and Expected Shortfall Risk for quantifying possible extreme losses due to future credit events, and a Parallel Shift model to view potential exposure and collateral effects after market shocks.