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Credit Scorecard Development and Implementation

  • Tuition USD $1,650
  • Reviews star_rate star_rate star_rate star_rate star_half 531 Ratings
  • Course Code CSDI7
  • Duration 2 days
  • Available Formats Classroom

This business-focused course provides a high-level introduction to credit risk management; detailed end-to-end methodology training for risk scorecard development for retail and SME portfolios; and discussions on scorecard implementation and risk strategy development, and scorecard and portfolio management reporting. The focus of the course is the development of application scorecards, but issues relating to behavior scorecard development will also be explored. Issues relevant to Basel II will be covered. These objectives are reflected in three sections.

Section 1, Introduction to Credit Risk: Students will get a high-level overview of the credit risk industry, risk management tools, and strategies. Students will understand the different uses of credit risk scorecards and learn industry terminology, as well as understand the main personas involved in successful credit scoring projects.

Section 2, Risk Scorecard Development: Students will learn how grouped-variable, points-based credit risk scorecards are developed, from the planning stages to delivery. While the main focus will be on business issues, statistical aspects of scorecard development will also be explored.

Section 3, Implementation and Maintenance: This section will cover post-development activities including setting cutoffs, strategy development, and scorecard maintenance reports.

Skills Gained

  • recognize the different uses for credit risk scorecards
  • recognize the main personas involved in successful credit scoring projects
  • plan a successful scorecard development project
  • develop grouped-variable, points-based credit risk scorecards, from start to finish
  • perform validation, use multiple scorecards, set cutoffs
  • develop strategies using scorecards
  • create reports on scorecard validation and maintenance.

Who Can Benefit

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

Prerequisites

  • No SAS experience or programming experience is required. Students 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 Details

Introduction to Credit Risk

  • risk management areas
  • terminology
  • applications of credit scoring in various industries

Preliminaries and Planning

  • create business plan: identify organizational objectives; and internal vs. external development, and scorecard type
  • create project plan: identify project risks and Identify project team

Data Review and Project Parameters

  • data availability and quality review
  • data gathering for definition of project parameters
  • definition of project parameters: performance window and sample window, performance categories definition, and exclusions
  • segmentation

Development Database Creation

  • development sample specifications
  • development data collection and construction
  • adjusting for prior probabilities/factoring

Model Development

  • missing values and outliers
  • initial characteristic analysis (binning): statistical measures and logical trend
  • building a preliminary scorecard using logistic regression
  • reject inference
  • final scorecard production: scaling, misclassification, and scorecard strength measures
  • validation

Scorecard Management Reports

  • gains tables
  • characteristic reports

Pre-Implementation

  • pre-implementation validation: scoring accuracy and front end validation

Strategy Development

  • strategy development considerations
  • scoring strategies
  • setting cutoffs
  • strategy actions
  • policy rules
  • overrides

Post-Implementation

  • review/postmortem
  • reporting: system stability, characteristic, override, final score, delinquency, and vintage

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

How do I enroll?

A comprehensive listing of ExitCertified courses can be found here. You can register directly for the required course/location when you select "register". If you have any questions or prefer to speak with an ExitCertified education consultant directly, please submit your query here. A representative will contact you shortly.

How do I pay for a class?

You can pay at the time of registration using credit card (Mastercard/Visa/American Express) cheque or PO.

What if I have training credits?

ExitCertified honors all savings programs from the partners we work with. ExitCertified also offers training credits across multiple partners through our FLEX Account.

When does class start/end?

Classes begin promptly at 9:00 am, and typically end at 5:00 pm.

Lunchtime?

Lunch is normally an hour long and begins at noon. Coffee, tea, hot chocolate and juice are available all day in the kitchen. Fruit, muffins and bagels are served each morning. There are numerous restaurants near each of our centers, and some popular ones are indicated on the Area Map in the Student Welcome Handbooks - these can be picked up in the lobby or requested from one of our ExitCertified staff.

How can someone reach me during class?

If someone should need to contact you while you are in class, please have them call the center telephone number and leave a message with the receptionist.

What languages are used to deliver training?

Most courses are conducted in English, unless otherwise specified. Some courses will have the word "FRENCH" marked in red beside the scheduled date(s) indicating the language of instruction.

Well organized course, supporting materials, and instructor. Good intro to AWS for various levels of participants - managers to developers.

Course trainer was excellent, content was well organized. However, labs should be instructor lead versus on your own. Much time is wasted for newbees in getting acclimated to tool set, AWS environment, navigating and setting up things to complete tasks. This was my third class and I was barely able to finish most of the labs. (The first 2 classes I only finished one lab exercise for the 2 together.)

Really nice and helpful staff! Office has well thought out interior design and plenty of snacks and drinks and coffee.

Very clean, great cafeteria and well sorted, very kind staff. The bathrooms have to be expanded as they might get crowded sometimes

Instructions were clear, lab exercises were pertinent and self-explanatory, topic was thoroughly covered in the presented course material.

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There are currently no scheduled dates for this course. If you are interested in this course, request a course date with the links above. We can also contact you when the course is scheduled in your area.

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