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Malaysia's Credit Guarantee Corp adopts SAS solution

AvantiKumar | Sept. 29, 2011
Improved outreach to Malaysian SMEs will be one benefit of the adoption of a SAS solution by Credit Guarantee Corp. Malaysia (CGC).


PHOTO - (From left) Datuk Wan Azhar Wan Ahmad, CGC's managing director exchanging document with Andrew Tan, SAS' managing director after announcing its purchase of the risk management solution from SAS.

Improved outreach to Malaysian small and medium enterprises (SMEs) will be one benefit of the adoption of a business analytics solution from SAS, according to Credit Guarantee Corp. Malaysia (CGC).

CGS's role of providing guarantee cover to qualifying Malaysian SMEs would be enhanced by this move, said CGC managing director Datuk Wan Azhar Wan Ahmad. "The solution from SAS Malaysia is also expected to deliver more efficient risk data reporting, which would enhance CGC's SME portfolio management and outreach."

"By centralising CGC's risk data storage, the SAS solution will quickly trigger alerts when CGC's risk appetite rules are violated," said Wan Azhar. "The quick identification of potential problems helps CGC better manage its risk exposure and provide more effective loan quality."

He said SAS would serve as an administration platform for CGC to continually develop and maintain its credit rating model, which is essential for loan quality management. "The system will also enhance strategic decision-making and risk mitigation through early warning signals and proactive risk monitoring."

"CGC's credit risk and operational management system will enable us to be more proactive in risk management monitoring and provide better credit quality and overall risk management," said Wan Azhar.

Datuk Wan Azhar added that the dynamic risk management system reflects CGC's resolve to further expand its outreach to all sectors of the economy. "With improved risk monitoring and enhanced efficiency, CGC will be able to better manage its diverse portfolio of SMEs and offer financing to those most viable and deserving." 

Established on 5 July 1972, CGC's shareholders are Bank Negara Malaysia (major shareholder) and all commercial banks. To date, it has cumulatively guaranteed more than 400,000 loans valued at RM48 billion (US$12.7 billion).


 Faster, more reliable risk reporting

Wan Azhar said this move would help CGC's efforts to improve its loan and service quality to the SMEs that form a significant segment of the economy.

"Over the past 35 years, we've helped companies like CGC meet their objectives by combining innovation and a passion for business analytics," said SAS Malaysia managing director, Andrew Tan. "We see CGC benefiting greatly from faster and more reliable risk reporting."

"SAS helps eliminate errors in risk identification, provides a new ability to pinpoint a specific risk sector and factor, and solves the huge challenge of integrating data of different variables from different systems for ad hoc reporting," said Tan.



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