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Creating and Using Matrices in Excel
There are certainly analytical tools in the market that are more sophisticated than Excel and there are certainly situations where these are needed to deliver enhanced accuracy or advanced features;...
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Betting Strategies in Poker as a Metaphor for Credit Risk Strategy
You’ve got to know when to hold ‘em, know when to fold ‘em Know when to walk away and know when to run I’ve always wanted to use the lines from Kenny Rogers’ famous song, The Gambler, in an article....
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Balance Growth Strategies
Building Revolving Balances Typically, a lender assumes a fixed amount of risk when a revolving credit limit is offered to a customer and in return for that risk they expect to generate revenue from...
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The Very Basics of Scorecards
First things first, I am by no means a scorecard technician. I do not know how to build a scorecard myself, though I have a fair idea of how they are built; if that makes sense. As the title suggests,...
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Developing to Developed: The Evolution of Credit Risk Strategies
In terms of credit risk strategy, the lending markets in America and Britain undoubtedly lead the way while several other markets around the world are applying many of the same principles with accuracy...
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Application Fraud
Many lenders fail to fully appreciate the size of their fraud losses. By not actively searching for – and thus not classifying – fraud within their bad debt losses, they miss the opportunity to create...
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Negative-Data Only versus Comprehensive Data Credit Bureaus
In developed markets ‘comprehensive’ credit bureaus are common place; that is credit bureaus which store information relating to all of an individual’s past repayments, not just information relating to...
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Credit Policy: How Much is Too Much
Every lending organisation needs a good credit policy but at what point does ‘good’ policy become ‘too much’ policy? There is of course a trade-off between risk control and operational efficiency but...
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The Dangerous Side of Regular Reporting
You will almost certainly have heard the phrase, ‘you can’t manage want you don’t measure’. This is true, but there is a corollary to that phrase which is often not considered, ‘you have to manage what...
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Reject Inference
I wrote my layman’s introduction to scoring a while ago now and never delivered the promised more in-depth articles. This is the first in a line of articles correcting that oversight. The team at...
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The Dangerous Side of Regular Reporting
You will almost certainly have heard the phrase, ‘you can’t manage want you don’t measure’. This is true, but there is a corollary to that phrase which is often not considered, ‘you have to manage what...
View ArticleClik here to view.
Reject Inference
I wrote my layman’s introduction to scoring a while ago now and never delivered the promised more in-depth articles. This is the first in a line of articles correcting that oversight. The team at...
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