About this course

Course code TPCSDI
Duration 2 Days

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.

Prerequisites

No experience or programming experience is required. Attendees should be familiar with logistic regression. Business experience is preferred, particularly in the following sectors:

• banking/finance
• retail
• insurance
• telecommunications

Delegates will 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.

Outline

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: Scorecard Management Reports

  • creating reports to enable monitoring and decision making

Scorecard Development Stage 6: Scorecard Implementation

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

Post-Implementation

  • creating scorecard and portfolio monitoring reports

2 Days

Duration

This is a QA approved partner course

Delivery Method

Delivery method

Classroom

Face-to-face learning in the comfort of our quality nationwide centres, with free refreshments and Wi-Fi.

Find dates and prices

Online booking is currently not available for this course, to find out more please call us on 0345 074 7998 or email us at info@qa.com to discuss how we can help.

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