FINANCIAL FORECASTING SYSTEM AND METHOD FOR RISK ASSESSMENT AND MANAGEMENT

摘要

A system and method for generating data such as a forecast indicative of risk associated with an application for financial services and/or a portfolio of financial agreements for purposes of risk assessment and management (30). The method includes the basic step of generating a forecast of performance wherein the forecast comprises a series of discrete scenarios applied over a finite time line, using a template called an aging strip. Such a forecast is indicative of risk. The present invention is a significant improvement over the prior art in that it does not rely on the future to mirror the past, but rather uses historical experience to provide scenarios and associated probabilities to generate a forecast of performance.