A host of early warning signals have been identified depending upon the systems and processes already implemented in the bank.
Early warning signals categorized into categories – transactional, financial, non-financial, external & statistical indicators – to identify emerging problems in credit exposures at an early stage
EWS uses a mix of traditional indicators of probable default as well as several new concepts which can be best adopted with the help of technology enabling real-time monitoring of the asset portfolio of a bank
Parameters produce a Score which is given percentage weightage. The weights are parametrizable and scoring is done based on median values across geographies for the same activity