RISKLAB

YUKKA 

RISK LAB

 

Realtime, actionable risk signals and assessments for +4 Mio entities including public and private companies worldwide

Next-level risk management

The Covid Pandemic has shown that the world spins faster than structured data can reflect it, making them a picture of the past. 

 

With YUKKA Lab`s real-time risk scores based on unstructured news data, we are about to change that and propel your risk management to the next level.

COUNTERPARTY 
SCREENING

Structured risk monitoring of all counterparties & clients: Risk officers have a cockpit to monitor their relevant set of companies, topics & industries.

REALTIME 
ALERTS

Alerts for significant events & developments: Get notified immediately of any adverse news that could lead to deteriorating creditworthiness of the counterparty.

GLOBAL COVERAGE & AUTOMATED EXPANSION

Our engine automatically indexes every new company or person mentioned in major news events.

RISK  SCORE

Customized risk scores for your business: Discover the top movers & losers based on sentiment & news volume to focus on the right client and respond

CREDIT RISK

We examine risks from every angle including long-term trends, blackswan events, sector risks to asses the overall risk and future credit risk of a company based on the news.

SANCTIONED ENTITIES & PEP CHECK

Our engine constantly monitors for exposure of persons or companies in sanctions lists worldwide and flags them when they get tagged into a sanction list or PEP list.

PREDICTIVE

EVALUATION 

Prediction models for upcoming risk & rating changes: Predict credit rating changes of a company well in advance based on real-time news & risk events

50+ Risk Events

 

With more than 50 risk events, the RISK Lab event cluster covers all major risk areas. To address individual areas of interest it  can be flexibly customized and extended.

  

FROM EVENT TO SCORE

 

To enable valid risk management, we create actionable scores based on unstructured real-time news data. Iterative evaluation and improvement of the score fine tune the calibration and increase its accuracy, either based on statistical approaches or, if suitable, on ML models.

 

 

NORM­ALIZED EVENT DATA

Normalized event data is calculated according to the size of the company and is provided to the model to make it suitable for predicting risk for SME companies as well.

STATIS­TICAL MODEL

Simple weighted z-score combination of relevant credit risk events picked by the client’s team along with sentiment and volume normalization to come up with a score from 0-10.

MACHINE LEARNING

State-of-the-art neural networks take events, sentiment, volume and news data  to decipher patterns between credit downgrades and structured news topics surrounding a company.

Risk-Proof your Portfolio

From counterparty screening to constant real-time monitoring of relevant entities, the risk analysis process with RISK Lab from YUKKA Lab covers all necessary steps to give you full control of your risk management.

Our system may  supplement traditional fundamental analysis methods or  even substitute them with state-of-the-art AI and machine learning technology. 

Counterparty Screening

Instance overview of top stories and events affecting the counterparty and related entities as well exposure to sanction or sanctioned parties.

Fundamental Analysis

the traditional method

Traditional analysis of cash flow, debt covenants and business performance.

News Based Risk Analysis

the modern way

Smart news- based risk indicators and predictive credit model to provide a holistic risk assessment based on company, macro and country trends.

Portfolio Risk Management

risk-proof entire portfolios

Signals to assess overall geopolitical and sector risk that could systematically affect portfolios.

Real-Time Counterparty Risk Monitoring

your personal risk radar

Realtime risk signals that can be set-up to alert you and proactively informs of upcoming risks.

Case Study: Evergrande

Shenzhen-based Evergrande Group, the world’s most valuable real estate company from 2018 to 2021, ran into financial trouble in mid-2021 due to high debt: as of 30 June 2021, the company had liabilities of 1.96 trillion renminbi (277 billion euros). 

 

In September 2021, the rating agency Fitch lowered its long-term rating for Evergrande from CCC+ to CC due to high debt and the risk of imminent defaults.

The share price fell by 95% within five months as a result of the crisis. On 20 September 2021, the share price plunged again by up to 19% to its lowest level in over 11 years. The share price reached the lowest level since May 2010 at the equivalent of € 0.225. 

 

The decline in Evergrande’s share price, combined with fears of a real estate bubble in China, also led to price losses on the stock exchanges in the United States, among others.

Early Warning Risk Alert

Risk Score spiked on 12 July 2021 as a result of a liquidity alarm .

Credit Rating Downgrade  

 

Fitch Downgraded Evergrande from CCC+ to CC, 2 months after the Risk Score spiked.

Missed Bond Payments
 

Defaults continue as Evergrande misses bond payments.

Case Study: Macy’s

Macy’s  is an American chain of department stores. As of 2015, Macy’s was the largest U.S. department store company by retail sales. Its flagship store is located at Herald Square in the New York City borough of Manhattan.

 

The company had 130,000 employees and earned annual revenue of $24.8 billion as of 2017. By February 2019, Macy’s Inc. was operating 867 stores.

In November 2018, Macy’s announced they would test smaller “neighborhood” stores to reduce costs and promote innovation within the customer experience realm.

 

In the second quarter of 2019, Macy’s shares fell more than 13 percent. On August 14, shares hit $15.82, which was their lowest since February 2010.

1-Yr Early Warning Credit Risk
 

Following Macy’s restructuring plans, weak holidays sales and weakness in the retail sector – YUKKA’s Credit Risk score rises in April 2019

Lowered Sales Guidance

 

Macy’s lowered its annual earnings guidance after a big earnings miss during the second quarter. This further increases the credit risk score in Aug 2019

Store Closure in 2020

 

Macy’s announces the closing 29 stores nationwide in Jan 2020 due to weak holiday sales and poor store performance, further increasing risk

GET YOUR 90-DAYS DEMO RIGHT NOW: 

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    INVEST LAB

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    ESG LAB

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    REST API

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