Phoenix Default Tool

Plug & play software for IT implementation of new EBA default definition

Phoenix Default tool is a software solution based on the best practice methodology, confirmed by BIG4 consultants, proven through Default automation in the largest CEE banks and offers the highest possible level of automation, covering all default triggers/events, prescribed by EBA, ECB, Local regulators or recognized by practice.
With our software you can achieve compliance with the new regulatory definition of default in the short time, through update of internal risk policies and practices, as well as adaption of systems and processes to reflect the new regulatory business requirements.

It is a complex modular system with the following characteristics

  • Fast deployment and easy configuration
  • Flexible and scalable database
  • Web-based solution with easy to use interface
  • Accessibility based on user rights
  • Simple functional parametrization
  • Audit trail
  • Enhanced reporting
  • Easy adaptation to the banks’ processes and segregation of duties

Phoenix Default Tool cover the whole process


DPD counter


Trigger and Default Recognition


Tracking defaulted clients


Cure period and Healing

What can you expect from Phoenix Default Tool

  • Business experts with hands-on experience in Default automation
  • Translation of complex regulatory requirements into functional specification
  • Best practice methodology proven through Default automation in the largest CEE banks
  • Dedicated software development team and agile project methodology
  • Powerful, highly flexible and easy to use/manage tool
  • Non-invasive integration architecture – no need to rewrite legacy software
  • Extensive reporting and PD/LGD needed data marts

Implementation plan


The first 30 days

  • New Default definition policy proposal/analysis
  • Business requirement document alignment
  • Functional specification proposal and alignment
  • Input data alignment

At 60 days

  • Set up application
  • Trigers/events within dimension & steering tables
  • Data import tests
  • UAT
  • Defect solving

At 90 days

  • Parallel run on MVP basis
  • Functionalities/ performance fine tuning
  • Additional trigers automation based on new data input provided
  • Roadmap agreement

Together with our consultant partners company we can provide

  • Independent review of business requirement/functional specification & quality assurance
  • Default policy fine tuning based on various impact analysis
  • PD&LGD model refinements based on historical simulation

Indicative project scope and functionalities

Project scope

  • Gap analysis of internal policies
  • Proposal of new Default Definition
  • Impact assessment analysis
  • Business requirements document
  • Functional specifications document
  • Software solution for the IT implementation of New Default definition


  • Input data quality validation, input data correction and load from the bank data mart into the tool database
  • Setting of the calculation parameters (triggers, events, thresholds, cure period…) per portfolio/segments
  • Default recognition (automatic and manual)
  • Tracking of defaulted clients
  • Cure period and Healing
  • DPD counter
  • Supporting functionalities
  • NPV loss calculation
  • Financial difficulties identification
  • Reporting
  • Data Marts for specific analysis or risk parameter development

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