Scorecard development

The Risk Scorecard Building Process:

  • Bureau, Data and Definitions;
  • Development Samples - CA and splits;
  • Correlation Analysis and fine and coarse classing;
  • Model Build and assessment of factors/power;
  • Reject Inference and TTD population evaluation;
  • Validation;
  • Scaling, alignment and cut-off setting;
  • Model deployment and documentation.

Risk Assessment:

  • Measures - Gini, KS Statistics, PSI;
  • Misattribution – product, price and asset quality;
  • Misclassification;
  • Arrears/Performance misalignments.

Delivery:

  • Affordability Model;
  • Application Scoring and Cascading;
  • Behavioral Scoring;
  • Collections Scoring.