Moody’s Analytics has released RiskAnalyst 5.4, a risk management program that standardizes the way lenders collect, analyze and store credit data to make lending decisions. The updated RiskAnalyst incorporates global cash flow and commercial loan workflow aspects to allow customers to enforce policies across the commercial loan origination lifecycle.

The upgrade is designed to reduce the number of human errors that occur with paper-based reporting. According to New York-based Moody’s Analytics, the loan origination process has often lacked policy controls and has been operated separately from an organization’s overall risk management program.

RiskAnalyst 5.4 is designed to close the gaps, and offer a method for integrating commercial lending functions in order to streamline and centralize loan originations and servicing.

Loan prospecting, underwriting, risk rating, pricing and capital assessment policies can be incorporated into one workflow system through the upgraded program.

The tool also improves a lender’s ability to estimate the probability of default of a commercial loan by taking into account all the cash flows involved in a deal, according to Moody’s.

“The new RiskAnalyst Workflow module solves a number of pervasive problems encountered by risk managers in the commercial loan underwriting and servicing process. It helps financial institutions to standardize loan processing and decision making across different portfolios and demonstrate compliance to regulators," says John Baer, director of product management at Moody’s Analytics.