Brady Technology’s Ian Tobin sees an active market for credit solutions with a lot of interest in Brady’s CRisk solution. Market volatility is driving a great deal of scrutiny in the credit area along with a need for more real-time reporting on various types of exposure, he told me. Brady has just signed a major new customer in the LNG space for its credit solution and expects that several more will follow as it has already received some verbal commitments to its software, he said. Brady is also upgrading customers on its on premises solution – Brady Credit Risk – over to CRisk. Consequently, Ian says Brady is very busy on the credit side of things now and he expects that to continue well into 2023. “Credit risk is now an exciting market with a constant stream of inquiries.” Credit solutions in energy and commodity markets tend to see interest in waves dictated by market events like bankruptcies yet Ian sees a different scenario developing this time as credit risk is being pushed to the fore by market conditions.
Current market conditions with volatility, not just in commodities, but also in FX and IR, are helping to bring credit back into focus as commodity businesses look to manage their exposures and manage liquidity risk and cash flows better. Things like large margin calls and pressure on counterparties, who suddenly found themselves short of natural gas because of a slowing and cut off Russian gas imports, have certainly meant that focus on counterparties and credit is now key. However, that focus is also about obtaining more timely information about things like potential margin calls, counterparty downgrades, more proactive limit monitoring and so on. These are all areas that Ian is seeing as being increasingly important and driving some of the recent interest in credit solutions.
With its acquisition of CRisk, Brady now has a modern credit solution that is available in the cloud. Not only that, but by working to integrate it with Brady’s other acquisition – Igloo – it also can deliver the benefits of tight integration between ETRM and credit risk solutions. However, that is not to say that CRisk won’t work with other ETRM solutions. Ian was quick to point out that it is a relatively open solution that can quickly integrate with third-party solutions.