Systems and methods for credit management risk rating and approval

A system of evaluating a credit offering to a borrower, the system comprising:

• an electronic user computer;
• and
• an electronic server in communication with the electronic user computer via a network, the server configured to execute software instructions to:
• electronically display on the electronic user computer a plurality of qualitative questions regarding the borrower, wherein the plurality of qualitative questions are answered by one of the borrower and a representative of the borrower, wherein at least some of the plurality of qualitative questions are based on an entity type of the borrower, wherein each answer is assigned a score representative of a portion of the borrower's creditworthiness, and wherein the electronic user computer is in electronic communication with an electronic database via a computer network;
• receive financial information, non-financial information, and sector information regarding the borrower from the scores of the answers to the plurality of qualitative questions;
• calculate a first financial factor based on the financial information, a second non-financial factor based on the non-financial information, and a third sector factor based on the sector information, wherein at least a portion of the sector information is specific to the entity type of the borrower;
• calculate a preliminary probability of default rating of the borrower based on the first financial factor, the second non-financial factor, and the third sector factor, wherein the first financial factor is given a first weight, the second non-financial factor is given a second weight, and the third sector factor is given a third weight;
• generate at least one warning signal based on the answers to the plurality of qualitative questions and the entity type of the borrower;
• display the at least one warning signal to a user, wherein the at least one warning signal highlights a potential credit vulnerability of the borrower that is not present in the financial information, the non-financial information, and the sector information;
• calculate a probability of default rating of the borrower based on the preliminary probability of default and the at least one generated warning signal;
• calculate a loss given default rating for the borrower;
• integrate the probability of default rating and the loss given default rating with other information relating to a credit offering to produce a credit memorandum;
• and
• automatically output the credit memorandum, wherein the credit memorandum comprises a recommendation associated with the evaluation of the credit offering.

A computer readable medium having stored thereon instructions which, when executed by a processor, cause the processor to:

• electronically display a plurality of questions regarding a borrower, wherein the plurality of questions are answered by one of the borrower and a representative of the borrower, wherein at least some of the plurality of questions are based on an entity type of the borrower, wherein each answer is assigned a score representative of a portion of the borrower's creditworthiness, and wherein the electronic computing device is in electronic communication with an electronic database via a computer network;
• receive financial information, non-financial information, and sector information regarding the borrower from the scores of the answers to the questions;
• calculate a first financial factor based on the financial information, a second non-financial factor based on the non-financial information, and a third sector factor based on the sector information;
• calculate a preliminary probability of default rating of the borrower based on the first financial factor, the second non-financial factor, and the third sector factor, wherein the first financial factor is given a first weight, the second non-financial factor is given a second weight, and the third sector factor is given a third weight;
• generate at least one warning signal based on the answers to the plurality of questions and the entity type of the borrower;
• display the at least one warning signal to a user, wherein the at least one warning signal highlights a potential credit vulnerability of the borrower that is not present in the financial information, the non-financial information, and the sector information;
• calculate a probability of default rating of the borrower based on the preliminary probability of default and the at least one generated warning signal;
• calculate a loss given default rating for the borrower;
• integrate the probability of default rating and the loss given default rating with other information relating to a credit offering to produce a credit memorandum;
• and
• automatically output the credit memorandum, wherein the credit memorandum comprises a recommendation associated with an evaluation of a credit offering to the borrower.

A method of evaluating a credit offering to a borrower, the method comprising:

• electronically displaying on an electronic computing device a plurality of qualitative questions regarding the borrower, wherein the plurality of qualitative questions are answered by one of the borrower and a representative of the borrower, wherein at least some of the plurality of qualitative questions are based on an entity type of the borrower, wherein each answer is assigned a score representative of a portion of the borrower's creditworthiness, and wherein the electronic computing device is in electronic communication with an electronic database via a computer network;
• receiving financial information, non-financial information, and sector information regarding the borrower from the scores of the answers to the plurality of qualitative questions;
• calculating, by the electronic computing device, a first financial factor based on the financial information, a second non-financial factor based on the non-financial information, and a third sector factor based on the sector information, wherein at least a portion of the sector information is specific to the entity type of the borrower;
• calculating, by the electronic computing device, a preliminary probability of default rating of the borrower based on the first financial factor, the second non-financial factor, and the third sector factor, wherein the first financial factor is given a first weight, the second non-financial factor is given a second weight, and the third sector factor is given a third weight;
• generating, by the electronic computing device, at least one warning signal based on the answers to the plurality of qualitative questions and the entity type of the borrower;
• electronically displaying on a display screen the at least one warning signal, wherein the at least one warning signal highlights a potential credit vulnerability of the borrower that is not present in the financial information, the non-financial information, and the sector information;
• calculating, by the electronic computing device, a probability of default rating of the borrower based on the preliminary probability of default and the at least one generated warning signal;
• calculating, by the electronic computing device, a loss given default rating for the borrower;
• integrating, by the electronic computing device, the probability of default rating and the loss given default rating with other information relating to the credit offering to produce a credit memorandum;
• and
• automatically outputting, by the electronic computing device, the credit memorandum, wherein the credit memorandum comprises a recommendation associated with the evaluation of the credit offering.