The Paragon Credit Solution is known as the leading credit risk management solution for today's complex, fast-paced energy trading environment. Used by energy companies of all sizes, Paragon provides that comprehensive set of tools, analytics and critical information needed by credit risk professionals in a sophisticated and intuitive, yet affordable, solution. Whether delivered via the web from a world-class hosting facility or installed within your site, Paragon's class leading capabilities combined with our experienced and dedicated consulting and support teams will ensure you are in control of all the risks associated with managing credit in the complex and dynamic energy markets today and into the future…all at a price that is accessible for companies of every size and ensures the lowest TCO of any competitive product.
Paragon’s Credit Manager provides complete coverage of cross entity, cross commodity, cross currency, and cross trade type exposure that reflects each counterparty’s contractual agreement, whether standardized NAESB, EEI, or ISDA master agreements, or complex and/or unique combinations of contractual credit terms and collateral requirements.
Paragon has been designed to aggregate contract, counterparty and trade data from across multiple systems; or it can operate as the originating system of record. In either case, Paragon provides a complete view of aggregated exposures and concentrations across all business dimensions and hierarchies.
Paragon’s collateral management capabilities allows for rapid identification of liquidity and collateral deficiencies, and triggers collateral calls to ensure adequate credit coverage for each counterparty based on contractually defined thresholds or performance covenants. Paragon’s intuitive user interface ensures credit professionals are easily able to quickly and accurately access all relevant counterparty collateral data.
Designed to ensure compliance with regulatory disclosure requirements, Paragon maintains a detailed and comprehensive audit trail of changes to counterparty data and legal structures. The solution enables users to quickly consolidate and report all relevant counterparty information in line with auditor or regulatory requirements.
Paragon provides the ability to apply standardized and established credit scoring methodologies, combined with each customer’s unique credit risk appetite, models and market knowledge, to maximize trading opportunities, yet limit credit risks. Paragon allows users to generate credit scores based on an unlimited number of scoring models and an unlimited number of scoring ratios.
Paragon’s open architecture provides easy integration to multiple data providers for financial data, credit data and industry ratios, including SEC online for counterparty company filings. Paragon's flexible architecture supports an unlimited number of user defined financial parameters while allowing default credit limits based on results of the models utilized by the company.
With proactive checks and automated alerts of any changes in financial data or SEC filings, Paragon will instantly update scoring models and generate appropriate change to ratings. With a complete history of these changes maintained in the system, Paragon can provide a complete comprehensive history for each counterparty on demand.
Paragon’s credit analytics capabilities, designed by energy market experts, provide the critical insights and business intelligence necessary to ensure that credit decisions and corporate finances account for the complex variables and potential for high risk events endemic in today’s energy markets.
Paragon’s potential future exposure (PFE) and potential future collateral (PFC) models incorporate Monte Carlo Simulations to fully reevaluate transactions to determine potential future exposure at various confidence intervals. These simulations can also incorporate rating downgrades and migrations to measure the impact on collateral requirements.
Paragon Credit Analytics incorporates CVAR and Expected Shortfall Risk to quantify extreme losses due to future credit events and quantify losses in the worst case scenarios where loss exceeds CVARs extremes. Utilizing a Parallel Shift model future allows users to view exposures and collateral effects of definable market shocks.
Designed to Inform
A rapidly changing energy market landscape, marked by volatile prices, massive infrastructure realignments, intrusive regulations and economic uncertainly mandates that companies have the critical tools and processes in-place that can help limit and ameliorate the variety of risks they face, including their counterparty credit and liquidity risks.
In this market, conditions may change rapidly and decisions of all stripes must be made with a clear view of all data and information. Credit decisions can and will impact business decisions across the enterprise, from trading to treasury. Paragon has been designed to specifically address the critical needs and provide the business intelligence required for those that operate in today’s energy markets.
Paragon provides a graphically rich and highly usable interface that allows users to instantly identify out-of-limit conditions and quickly and easily consume a variety of metrics and reports, including daily credit position developed and based on a variety of metrics. The solution’s familiar Windows look and feel ensures users can easily navigate and have near instantaneous access to a wealth of customizable graphs, screens and reports.
Operating either standalone or in conjunction with existing contract and trade capture systems, Paragon's modern architecture and comprehensive data model allows the solution to operate as either the originating system of record, or as the recipient of data from other systems. This flexibility to aggregate all relevant and up-to-date contractual and trading data allows users to track, view, and manage real-time aggregated exposures, and drill down to the lowest level of detail to identify potential issues and risks.