Credit Scorecard Development and Implementation

Business Knowledge Series course

Duration: 2.0 days
Course fee: $1,940
EPTO units: 2
CEUs: 1.2

Presented by Naeem Siddiqi, author of Credit Risk Scorecards

This business-focused course provides the necessary knowledge to plan, develop, implement, and maintain risk scorecards in-house. The course offers a high-level introduction to credit risk management and covers scorecard implementation strategies.

Learn how to

create business and project plans for scorecard development
develop and validate intelligent credit risk scorecards in a step-by-step fashion
generate scorecard and portfolio performance reports.

Who should attend

Credit risk/scoring managers and data miners; those involved in model vetting/validation and auditing; risk strategy developers; and credit risk executives

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Prerequisites

No SAS experience or programming experience is required. Attendees should be familiar with logistic regression. Knowledge of SAS Enterprise Miner is helpful, but not necessary. Business experience is preferred, particularly in the following sectors:

banking/finance
retail
insurance
telecommunications

Course Contents

Introduction to Credit Risk Management

identifying types of risks
knowing the benefits of risk management
discussing applications of credit risk management

Scorecard Development Roles

identifying scorecard development roles and why they are important

Scorecard Development Stage 1: Preliminaries and Planning

establishing project objectives
creating a project plan
creating a business plan

Scorecard Development Stage 2: Data Review and Project Parameters

researching data availability and quality
gathering data for definition of project parameters
defining exclusions, such as good/bad and indeterminate cases

Scorecard Development Stage 3: Development Database Creating

creating development data sets
adjusting for price probabilities

Scorecard Development Stage 4: Model Development

handling missing values and outliers
performing initial characteristic analysis (binning)
creating a preliminary scorecard using logistic regression
performing reject inference
scaling a scorecard
selecting the best scorecard
validating a scorecard

Scorecard Development Stage 5: Scorcard Management Reports

creating reports to enable monitoring and decision making

Scorecard Development Stage 6: Scorecard Implementation

performing pre-implementation validation
scoring strategies
setting cutoffs
designing action strategies using scorecards
understanding policy rules and overrides

Post-Implementation

creating scorecard and portfolio monitoring reports

Software

This course addresses SAS for Enterprise Risk Management. Although the solution is used to illustrate the examples, the course is software-neutral.

Course Materials

Students receive a hardcopy of the course notes and, in some courses, can choose to take home a copy of the course data. You also receive a copy of Credit Risk Scorecards: Developing and Implementing Intelligent Credit Scoring by Naeem Siddiqi.

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Are there additional topics you'd like for this course to address? Would you like for this course to be offered at another training facility? Let us know by adding to our Interest List.

Course fee and EPTO units will differ for on-site training.

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