Risk Adjusted Return Model (RAR)

The RAR model enables you to measure and appropriately price the risk taken by an institution. It takes into account various types of corporate loan facilities a bank might be extending to its clients, regardless of the client industry.

The RAR model takes into account the Loss Given Default as required by Basel, and can be used for both funded and non-funded facilities. ARX would be happy to provide a white paper outlining its methodology upon request.