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Credit Scorecard Development & Implementation - CSDI

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.

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Duration:

2 days - Classroom

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

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 Addressed

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

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