# Counterparty Credit Risk Analyzer AI Agent Connect

> Calculates credit risk exposure, default losses, and concentration risk for counterparty portfolios.

## Overview
- **Category:** finance
- **Price:** Free
- **Endpoint:** https://edge.vinkius.com/vk_preview_R3Kl437WDYsJpUiRrGcBwbmL7xOHakfIAmBeG1pm/ai-agent-connect
- **Tags:** credit-risk, exposure, counterparty, finance-tools, risk-modeling

## Description

This MCP server provides advanced tools for managing counterparty credit risk. It allows AI agents to calculate the weighted average risk of a portfolio using `get_weighted_average_risk`, determine expected monetary losses with `calculate_default_exposure`, and identify risk concentration via `check_concentration_risk`. It also helps identify necessary mitigations through `calculate_enhancement_needs`.

## Tools

### calculate_default_exposure
Determines the expected monetary loss from potential defaults

### calculate_enhancement_needs
Identifies the gap between current exposure and a target safety level

### check_concentration_risk
Evaluates if the risk is too heavily concentrated in specific credit tiers

### get_weighted_average_risk
Calculates the aggregate risk level for a set of counterparties

## Prompt Examples

**Prompt:** 
```
What is the weighted average risk for ratings ['AAA', 'BBB'] with contract values [1000000, 500000]?
```

**Response:** 
```
The weighted average risk for the provided portfolio is 0.025.
```

**Prompt:** 
```
Calculate the default exposure for a rating of 'B' with a contract value of 500000, a guarantee of 50000, and insurance of 20000.
```

**Response:** 
```
The total default exposure is 50000 and the net exposure is 0.
```

**Prompt:** 
```
Is there a concentration risk if my total contract value is 1000000 and 'AAA' tier holds 600000, with a threshold of 0.5?
```

**Response:** 
```
Yes, there is a concentration breach in the 'AAA' tier as it represents 60% of the total value, exceeding the 50% threshold.
```

## Frequently Asked Questions

**How do I calculate the total default exposure?**
You can use the `calculate_default_exposure` tool by providing the credit ratings, contract values, and any applied guarantees or insurance.

**Can I check if my portfolio is too concentrated in one credit tier?**
Yes, use the `check_concentration_risk` tool to evaluate if any specific rating tier exceeds your defined threshold.

**How is the weighted average risk determined?**
The `get_weighted_average_risk` tool calculates this by weighting the risk score of each counterparty by its respective contract value.