Credx

Risk Management & Compliance

A disciplined, data-driven framework designed to safeguard investor capital across every market cycle.

Credx operates with an institutional risk management framework designed to safeguard capital, ensure regulatory and Shariah compliance, and maintain transparency across every credit exposure.

Our approach combines data-driven credit assessment, continuous monitoring, and independent oversight aligned with global standards and local market requirements.

AI-Enabled Risk Management & Compliance

At Credx, risk management and compliance are foundational. We combine human credit expertise, robust governance frameworks, and artificial intelligence to deliver disciplined, transparent, and scalable private credit underwriting aligned with Saudi regulatory expectations and global best practices.

Artificial intelligence at Credx is deployed as a decision-support layer, enhancing consistency, speed, and early risk detection while final credit authority remains firmly within approved governance structures.

Built on Trusted Financial Data Intelligence

Credx leverages S&P Global’s market, credit, and risk data to enhance the accuracy of its credit evaluations and portfolio insights. This integration ensures every decision is supported by trusted, up-to-date intelligence. As a result, analysis becomes more objective, consistent, and data-driven across all financing processes.

Through Wiserfunding’s SME risk models, Credx gains deeper visibility into business performance and industry benchmarks. This integration strengthens the ability to predict default probabilities with greater precision. It enhances both underwriting quality and ongoing portfolio monitoring.

Abwab AI is a Saudi-based artificial intelligence platform that helps financial institutions make faster and more accurate SME credit decisions through automated underwriting and real-time data analysis. It streamlines the lending process, reduces risk, and improves access to financing for small and medium enterprises across the MENA region.

Credit Risk
Management

Composite Credit Scoring Model

Credx uses a multi-source scoring engine combining external and internal risk signals, including:

  • S&P Global Market Intelligence (industry risk, country risk, PD curves, leverage benchmarks).
  • Wiserfunding SME Models (SME creditworthiness, sector comparables, Z-scores).
  • Government & Regulatory Sources
  • SIMAH (credit bureau)
  • Bayan (payment behavior & supply-chain data)
  • ZATCA (VAT-based revenue validation)
  • Ministry of Commerce (corporate registry, ownership, history)

The composite model produces:

  • Probability of Default (PD)
  • Loss Given Default (LGD)
  • Facility size, tenor, security, and monitoring level recommendations.
  • Behavioral repayment patterns
  • Customer/supplier concentration
  • Seasonality & cash conversion cycles
  • Anchor/obligor counterparty strength
  • Fraud, anomaly, and data-integrity checks
  • Portfolio correlation and exposure mapping

Multi-Dimensional Risk Categories

Below is a comprehensive breakdown of all risk types we actively monitor, aligned with global credit-industry standards.

The risk of borrower default or deterioration.
Managed through:

  • Composite scoring
  • Financial & cash-flow analysis
  • Collateral-backed structures
  • Anchor/counterparty assessment
  • Stress testing under macro & sector scenarios
  • Credit Committee approvals

Private credit is largely insulated from mark-to-market volatility, but we manage:

  • Sector cyclicality
  • FX exposure (when applicable)
  • Macroeconomic shifts affecting borrower segments
  • Interest-rate sensitivity on fund-level liabilities
  • Commodity exposure for relevant industries

Ensuring the fund can meet redemption, deployment, and distribution requirements.
Controlled by:

  • Short-duration exposures
  • Diversified repayment schedules
  • Cash buffers and liquidity forecasting
  • Rapid turnover of receivables and inventory

We avoid excessive exposure to:

  • Single borrowers
  • Single anchors/customers
  • Specific industries
  • Specific geographies
  • Portfolio thresholds are monitored daily
  • Specific origination channels

Risks arising from systems, processes, people, or errors.
Mitigated via:

  • Segregation of duties
  • ISO-aligned internal controls
  • Third-party audits
  • Automated onboarding & data collection
  • Cybersecurity and data protection policies 

The financial health and payment performance of:

  • Segregation of duties
  • ISO-aligned internal controls
  • Third-party audits
  • Automated onboarding & data collection
  • Cybersecurity and data protection policies 

We track anchor PDs using sector and counterparty assessment frameworks (aligned with S&P industry-risk matrices).

Each asset class — receivables, inventory, POs, trade flows — undergoes specific risk evaluation:

  • Authenticity verification
  • Aging and dilution analysis
  • Inventory liquidation values
  • Dispute & chargeback risks
  • Anchor creditworthiness

For deals sourced through fintechs, banks, or platforms, we evaluate:

  • Origination quality
  • Underwriting methodology
  • Collection performance
  • Historical default rates
  • Compliance procedures 

We maintain tiered approval levels for each partner.

Credx maintains full adherence to: 

  • CMA regulations
  • AML/CTF policies
  • FATF & local sanctions lists
  • Data governance requirements

All clients undergo full KYC, UBO verification, and enhanced due diligence where required.

Overseen by Shariyah Review Bureau (SRB) through: 

  • Structure-level Shariah certification
  • Transaction-level reviews
  • Annual Shariah audits
  • AAOIFI-standard governance

This ensures financing structures (Murabaha, Wakala, agency) remain fully compliant.

We mitigate enforceability risks through:

  • Assignment of receivables
  • External legal reviews
  • Strong security & pledge documentation 
  • SPAs, PO-based financing, inventory controls

To ensure analytics remain reliable:

  • Models undergo periodic recalibration
  • Back-testing against defaults
  • Independent third-party validation (including S&P and Wiserfunding methodology alignment)
  • Manual override procedures with full documentation 

Continuous Monitoring

Real-Time Monitoring Tools

  • Daily exposure updates
  • Invoice & payment tracking
  • EWI (Early Warning Indicators) across 40+ signals
  • Anchor-level events (downgrades, delays, disputes)

Monthly & Quarterly Reviews

  • Financial updates
  • Limit reviews
  • Counterparty reassessments
  • Regulatory and compliance reporting