F I Tech: Ontonix says rating banks can be easy
Italian software company Ontonix says that it specialises in "complexity management." And that, it says, means that it can simplify complex issues quickly, easily and cost-effectively. Including risk-assessing banks. The company claims that it means that it can overcome weaknesses of current risk-rating methods.
The company has designed downloadable MS-Excel templates for fast on-line rating of banks and corporations. The objective of these templates is to guide users of Complexity-Online service to evaluate significant parameters of their business processes.
"Our goal is to provide objective rating information to corporations and investors worldwide," said Dr. J. Marczyk, founder and CTO of Ontonix.
"Our complexity-based rating is automatic and, most importantly, based on model-free techniques. Traditional concepts of ratings are based on statistical models and involve feedback. This contributes to the subjective nature of conventional ratings," Marczyk added "Rating lies at the very heart of our economy and influences investors and decision-makers. For this reason it must be dynamic and objective. Moreover, the pricing of our rating service makes it accessible to even the smallest of companies."
The company claims that conventional ratings indicate long-term Probability of Default without providing insight on actual state-of-health of underlying business. However, in a turbulent economy, it is precisely this kind of information which investors need. Traditional ratings are based on company's historical information which is used to drive statistical models. These models are then used to predict the company's future. In a rapidly changing global economy, models are unable to capture all the nuances of the present to furnish a credible prediction of the future.
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