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Credit Scorecard Development and Implementation (CSDI)




Course duration: 2 days

Business Knowledge Series course

Presented by Naeem Siddiqi, product manager, credit scoring, Global Risk Practice at SAS and 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

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


This course addresses SAS for Enterprise Risk Management software.Although the solution is used to illustrate the examples, the course is software-neutral. There are no hands-on programming exercises in this course.

Course 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: 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

Course Materials

Classroom: Students attend classroom courses in one of our public training centers. You receive a hardcopy of the course notes and, in some courses, can choose to take home a copy of the course data.

System Requirements

This course addresses SAS for Enterprise Risk Management software.Although the solution is used to illustrate the examples, the course is software-neutral. There are no hands-on programming exercises in this course.

 

 
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