Decision Model: “Borrowing PASS/FAIL Decision with Mitigation Criteria“ Solutions
Rule # 1:
New Borrowings cannot exceed 30% of Total Assets.
Mitigation Criteria:
If the executive committee flag is set to “Y” and the executive committee exposure override is set to a percentage higher than the new borrowings/total assets ratio then PASS
Otherwise FAILRule # 2:
New Borrowings cannot exceed 1-4 Threshold.
Mitigation Criteria:
The new borrowings is less than the non-repo collateral available for the customer
then PASS
Otherwise FAILTest Data
Customer #200: ABC Bank
Total Assets = 20,000,000
Executive Committee Flag = “Y”
Executive Committee Exposure Override = 35%
1-4 Threshold = 1,000,000
Non-Repo Collateral = 2,500,000Customer #500: Bank One
Total Assets = 50,000,000
Executive Committee Flag = “N”
Executive Committee Exposure Override = 0%
1-4 Threshold = 3,000,000
Non-Repo Collateral = 3,250,000Change the mitigation rules to make the failed transactions to pass.
Proposed By: a Wall Street institution as a POC for selecting a BRMS
Solutions:
- Oracle Policy Automation – submitted by Martijn Tromm from Oracle
- OpenL Tablets – submitted by Hanna Peravalava from EIS Group
- Corticon Studio – submitted by Maria Jesus Garcia from DECIDE
- IBM ODM 8.6 – submitted by Andrea Di Placido from DECIDE
- OpenRules with DMN – submitted by Jacob Feldman from OpenRules, Inc.
- IDIOM – submitted by Mark Norton from Idiom Software
- Sparkling Logic – submitted by Carole-Ann Matignon
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