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Credit Risk Rating Platform – System Architecture
The Credit Risk Rating Platform
As Innovations now finally has an official blog I’m happy to contribute articles related to my every day work at Innovations. As a start I’ll write about the architecture of the Innovations Credit Risk Rating Platform (CRR Platform). If you are interested in the business background of Credit Risk Rating I suggest having a look at the Innovations website. Although most projects are using the Credit Risk Rating Platform in a Basel-II context it is also used in leasing-, credit application- or other domains that deal with the rating of risks. That’s why the CRR Platform is internally and externally also referred to as the Risk Rating Platform.
The Innovations Risk Rating Platform is based on the Dynamic Appplication Framework (DAF). As the dynamic application framework is a generic tool and framework, the Risk Rating Platform adds domain specific functionality to DAF. The Innovations Credit Risk Projects department then adds additional business knowledge and project experience to the mix.
The following diagram shows a typical setup of a Credit Risk Rating Platform installation – the actual setup of course varies from customer to customer.
Let’s have a look at the components in more detail:
The Modeling Environment
The modeling environment consists of a client and a server part. On the client side the Model Administrator (most of the times a business user with domain knowledge) uses the Model Authoring Platform (a set of plugins that extend the Visual Rules Modeler) enabling the Business user to model Layout, Business and Workflow rules within the same toolset. On the server side the Visual Rules Team Server acts as a central rule repository (similar to a VCS like SVN or CVS) – storing its data in a relational database like Oracle or MS-SQL Server.
Whenever a model is considered stable enough for being uploaded to the web application it can be deployed to the rating manager with a simple web interface.
The Runtime Environment
On the client side of the runtime environment a standard web browser without any special plugins is used. And even in 2010 we still support IE6 . On the server side the most important part of the CRR Platform´s runtime environment is the rating manager web application. A standard compliant web application that includes the Visual Rules and DAF runtime components for executing Visual Rules models and rendering user interfaces modeled with Visual Rules.
Besides the Rating Manager a typical scenario also includes a Job Executor that uses the same or similar Visual Rules rule models as the ratingmanager web application and often also shares the rating database with the web application. Within the job executor the rule models are executed in an offline batch scenario instead of an online scenario. A typical goal is to calculate as many ratings as possible in an automated batch and only process a small subset of the ratings manually with the rating manager web application.
In all scenarios Visual Rules offer great possibilities for integrating external data sources like databases (e.g. for master data or reporting purposes) or web services (e.g. for credit bureau information or backend systems).
I hope that this blog entry gave you quick overview about the general CRR Platform architecture – If you have any questions please use the comment functionality or drop me an email.