Financial institutions are entering a new phase in credit risk modeling. AI and machine learning are no longer experimental capabilities. They are becoming central to how risk is assessed, priced and managed at scale. At the same time, regulatory expectations are evolving. The European Central Bank (ECB) has opened the
A new study spanning more than two decades and more than 500,000 issuer-months presents one of the most accurate and forward-looking models of corporate credit rating transitions to date. By combining machine learning with the SAS® KRIS® 1-year default probability (KDP), the authors show how investors can gain a powerful
Once a bastion of stability, the banking industry now finds itself navigating a complex world of evolving risks. From economic uncertainty and geopolitical tensions to AI advancements and climate crises, the industry is navigating a whirlwind of risks that show no signs of slowing down. What worked in the past
