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Migration Analysis

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The Risk Migration Analysis system enables lenders to use historical portfolio performance to forecast future losses and identify specific areas of exposure.  Unlike any other software available today, the system combines automated updates, portfolio filtering, risk migration, and drill down reporting in a single turnkey system. This capability enables credit risk, loan review and compliance professionals to easily evaluate any area of interest and respond quickly and confidently to internal and external demands. The benefits of the Risk Migration Analysis System are simple and compelling:

  • Dramatic Time Savings - Analysts can produce in minutes reports that take hours using traditional database tools and spreadsheets.
  • Error-Free Analysis - The accuracy of the migration reports is limited only by the quality of the data from the banks Loan Accounting System.
  • Verifiable Data Integrity - Loan data is unchangeable after it enters the Risk Migration Analysis database.
  • Automatic Report Validation - Loan level detail reports are automatically generated for every portfolio migration, providing instant validation of summary results.

Typical Risk Migration Process - Drawbacks

The typical risk migration process is performed using a combination of database, spreadsheet and reporting tools.  A drawback to Risk Migration Analysis has been its labor and time intensive process and sensitivity to imperfect historical data.  


  • The process is time intensive – often requiring several hours of an analysts time to perform a single migration
  • Opportunities for manual and formula-based errors exist at every step of the process
  • Variations from standard reports can require days for rework
  • Auditability of migration results to loan accounting system records is difficult or impossible
  • Intellectual know-how is trapped within spreadsheets and their author
  • Direct use is limited to analyst who programs the model

The Risk Migration Analysis System

The Risk Migration Analysis system is the first software package to combine all essential elements within a single system:

  • Automated loan system updates
  • Simple Point and Click Portfolio filtering with any property (e.g., Zip Code, Customer, NAIC, Collateral, Property Type, etc.)
  • Parameterized risk migration analysis
  • Drill down to loan migration reporting and an automatic audit trail
  • Data integrity validation
  • Browser-based access by many users
  • Historical database built with data automatically extracted from the loan accounting system.

These features enable credit risk professionals to quickly and confidently create loan pools, define analysis timeframes, and generate migration reports and graphs for historical and future performance. 

In customer production since September of 2003, the Risk Migration Analysis system is a valuable component of every credit quality toolkit and a key contributor to regulator and auditor confidence in a lenders ability to manage credit risk. The current production release of the system provides support for dual ratings, consumer loan migration and exception reporting for loans that contain faulty data.


Contact us for additional information on Migration Metrics Products and Services.