A database related to the credit behavior of over 4.000 small and medium sized enterprises (SME) has been created by Systemic Risk Management, a Greek software firm, aiming to continuously improve the quality of the services it provides to its clientele.

This database, which is being enriched on a daily basis in cooperation with several companies, contains not only SME financials, but also their qualitative assessment by their banks' account officers on the basis of approx. 20 strict criteria (i.e. a business depending on one person, management efficiency etc.)

The core activity of SYSTEMIC, which was founded in 1999, concerns the practical implementation to its clients of Basel II compliant risk management practices. SYSTEMIC has developed specialized software solutions covering mainly market, credit and operational risk, which are fully customized to match its clients' specific requirements. SYSTEMIC's clients include banking organizations, insurance companies, asset management, and brokerage firms.

Major contracts which are currently in the implementation stage by SYSTEMIC in the financial sector include the cooperation with Piraeus Bank related to the supply and full support of a risk management system to cover foreign exchange positions, and the extensive cooperation with Panellinia Bank and the Cooperative Banks of Greece. Other established SYSTEMIC clients include among others National Bank of Greece, HSBC Bank, Societe Generale and many brokerage firms.

SYSTEMIC's enriched database serves to analyze continuously the statistically significant risk drivers related to the prediction of a problematic credit behavior by any company. It aims to control and improve depending on prevailing market conditions, the accuracy of the default probability and credit rating evaluations by SYSTEMIC's specialized systems on an on-going basis.

As reported to 'N' by Aristides Protopapadakis, SYSTEMIC's  Managing Director, the management of market and credit risks have received a lot of attention in Greece mostly by financial institutions, while the corporate market still lacks the maturity required to monitor systematically the financial risks which they undertake. He also emphasizes that SYSTEMIC has already initiated its development in the markets of Turkey, Bulgaria, Romania, and Cyprus, and it is currently establishing a strong presence in the Middle East area.

Petros Krystallakos