Developed by SAS, the Comprehensive Credit Assessment Framework (CCAF), is a unique rating system that extends existing credit scoring to embrace all relevant factors and business context so that lenders can classify credit risk and decide all transactions in a more effective, transparent and forward-looking manner. CCAF's systematic segmentation approach has implications for both intervening in the mortgage crisis and preventing future financial disruption.

A global survey of 334 executives from around the world in March 2009 by the Economist Intelligence Unit on behalf of SAS reveals that only one-third of respondents think that risk management principles in financial services remain sound, and more than half surveyed say that they have conducted, or plan to conduct, a thorough overhaul of their risk management practices. Read this paper to learn more about implications for how financial organizations are approaching risk management as a result of the financial crisis.

Unlike any other software tool, spreadsheet programs have found their way into everyday reporting and quick calculations. Because of this popularity, there is frequent talk of overuse and even serious risks posed by spreadsheets. However, spreadsheets are insufficient for regulatory reporting and risk management. This paper explains the risks posed by spreadsheet reliance, proposes the optimum use for spreadsheets as part of an integrated data framework and discusses the role of SAS Business Intelligence software as a risk management solution.

In September 2005, the Federal Reserve Board will disclose pricing data on higher cost loans with respect to applicant race, ethnicity, gender and income status. This new pricing information, in the officially filed HMDA data, will be used to monitor mortgage lending practices and assist in identifying possible discriminatory pricing patterns.

This paper presents a systematic approach for statistical analysis of HMDA pricing data. You will learn how an effective and powerful method to detect statistically significant pricing disparities amongst various groups is beneficial for lending institutions. The method described in this paper can be applied to HMDA filing data and a broader set of information including additional applicant and transaction information, credit bureau data, and credit underwriting and pricing policies.

Data management is a critical component of any enterprise risk management (ERM) system. A bank's approach to data management should be holistic and unified, with a platform that is scalable, open and capable of supporting the needs of multiple risk management functions. This white paper discusses the various components required for successful ERM and explores their cumulative benefits as part of a unified structure.

SAS for Customer Experience Analytics is designed to enable retail banks to tailor every customer contact and optimize value at every opportunity, from visitor arrival through web site interaction to the business response. This white paper describes the technology landscape leading up to the current demand for true, actionable multi-channel intelligence, together with the key elements required for a successful customer experience analytics solution.

Understanding customers' credit scores is essential for banks, and there is much to be gained by conducting credit scoring activities in-house, including consistency, accuracy, faster integration of new models, and privacy.

Read this white paper to learn how SAS helps build and maintain their own credit scoring function. The paper discusses the development and deployment of scoring models, as well as the process of monitoring those models for improvement.

This paper illlustrates how Credit Scoring for SAS Enterprise Miner software is used to build credit scoring models for the retail credit industry. It discusses the benefits of performing credit scoring and the advantages of building credit scoring models in-house using SAS Enterprise Miner. It goes on to discuss the advantages and disadvantages of three important model types: the scorecard, the decision tree and the neural network. Finally, it presents a case study where an application scoring model is built with SAS Enterprise Miner, beginning with reading the development sample, through classing and selecting characteristics, fitting a regression model, calculating score points, assessing scorecard quality (in comparison to a decision tree model built on the same sample) and going through a reject inference process to arrive at a model for scoring the new customer applicant population.

This white paper discusses the nature of business risk, from credit risk to market risk and operational risk, primarily in the context of the banking industry. The paper provides a history of the Basel accords, outlining in detail the implications of Basel II on risk management. You will also learn about the processes and systems  required for implementing internal ratings-based approaches to risk management.

In times of market turmoil, several weaknesses of risk management systems that had been developed in relatively benign market environments have become apparent. As a consequence, the challenge today consists of refining and enlarging the traditional credit risk management repertoire on the one hand, and being more creative in the modeling and management of innovative credit products on the other hand. Furthermore, a successful risk management system will allow for the interdependencies between credit risk, liquidity risk and market risk and will contrast various quantitative analyses with qualitative considerations. This white paper focuses on the credit risk management part of an integrated enterprise risk management system.

Financial institutions are finding it necessary to strengthen their anti-money laundering (AML) platforms to stem the tide of illicit financial transactions and meet new regulatory mandates. For enterprises with moderate to high risk exposures, this calls for a rigorous automated system based on dynamic risk assessment. This white paper discusses how SAS Anti-Money Laundering enables institutions to create an enterprisewide view of customer relationships and risks, monitor activity using multiple detection methods, adapt that monitoring as appropriate for each customer's risk classification, investigate and document suspicious cases, and produce required regulatory reports – all within an integrated solution built on award-winning SAS data management and analytic capabilities.

As banks increasingly look to best-of-breed, third-party solutions for their risk management and independent derivatives valuation needs, SAS and FINCAD have partnered to offer a joint solution to address these needs. Following this best-of-breed approach can save a bank significant time and costs over developing the systems in-house. This white paper discusses the joint solution from SAS and FINCAD – an enterprise risk management system with independent derivatives valuations – and how the solution enables banks to develop effective risk policies that are designed to continuously manage a firm's risk-and-return profile and the capital required for long-term success.

Organizations that respond to regulatory pressures by simply documenting their existing fraud management practices are selling themselves short. This paper describes how an enterprisewide approach to fraud management -- spanning all contact channels and account types and including powerful analytics, holistic intelligence and integrated case management -- is the best approach for financial organizations looking to turn the tide on fraud.

In September 2005, the Federal Reserve Board will disclose pricing data on higher cost loans with respect to applicant race, ethnicity, gender and income status. This new pricing information, in the officially filed HMDA data, will be used to monitor mortgage lending practices and assist in identifying possible discriminatory pricing patterns.

This paper presents a systematic approach for statistical analysis of HMDA pricing data. You will learn how an effective and powerful method to detect statistically significant pricing disparities amongst various groups is beneficial for lending institutions. The method described in this paper can be applied to HMDA filing data and a broader set of information including additional applicant and transaction information, credit bureau data, and credit underwriting and pricing policies.

Anticipated regulatory changes will demand more transparency from capital markets firms. They can deliver this transparency and accountability more readily and gain a competitive advantage by creating a model and scenario library linking the front office, middle office and risk management teams. This paper outlines an approach for creating a common model, security and scenario library for modeling structured, fixed-income securities and equities for use by front office, middle office and risk management teams.

Current economic conditions heighten the need for financial services firms to accurately gauge required levels of regulatory compliance and economic capital to support business strategy and risk appetite. More regulations are on the way, demanding transparency, accurate information about company operations, robust and comprehensive risk management, regulatory compliance and efficient governance. What does this mean for many organizations? This paper takes a step back to examine how all components of a successful company must work in an integrated manner in order to produce the best results, and how SAS approaches governance, risk, compliance and performance management issues by providing a comprehensive framework for analyzing and managing risks in the context of corporate strategy and performance.

Asset-backed securities pose special problems for risk managers because of their contingent, path-dependent cash flows. This paper provides a high-level, conceptual view of 1) the difficulties involved in measuring the risk of asset-backed securities, 2) a methodology for overcoming those difficulties and 3) a software solution that can implement the chosen methodology for projecting potential profit-and-loss distributions of asset-backed securities at various future points in time or horizons.

Many providers are struggling with the increasing complexity and cost of networks, service choices and business processes. Read this white paper to learn how a customer value optimization approach can help service providers understand how customers engage with the company, identify ways to reduce churn, and systematically record customer management activities and results. You will also learn how a customer value optimization approach transformed the profit picture for a top-tier wireless carrier.

Deregulation and competition have many telecommunications providers struggling to sustain or restore profitability. This white paper outlines ways that activity-based management reflects the actual costs involved in attracting, supporting and keeping a customer. You will learn about the shift from commodities to customers in the marketplace and the importance of customer profitability as a measure of economic value.

A key element of performance management is to use fact-based data, for analysis and decision support. For this reason, activity-based cost management (ABC/M) is one of the more important methodologies in performance management. This paper discusses the pressures for improved cost accounting in government, explains why there is some resistance to ABC/M and describes some successful applications of ABC/M in the public sector to date.

This white paper offers a framework that is based on the notion of four pillars. These four pillars (catalyzing conversations, inspiring innovation, championing insight and fostering leadership) are foundation activities that position educators to thoughtfully and more nimbly build for an increasingly dynamic future.

This white paper explores the concept of institutional effectiveness in higher education and outlines three steps to implementing it successfully. First, an educational organization must define institutional effectiveness for itself. Next, people, culture, technology and processes must be aligned. Finally, the institutional effectiveness message must be communicated to external audiences. Ultimately, this paper describes new technologies that help higher education institutions identify needs, align resources and communicate more effectively.

To meet global competition, a nation must spend more on education. While that is true, it is even more important how the money gets spent. There is legitimate concern in both Europe and the US that education systems are not fully preparing communities to thrive in today's knowledge-based economy. Indeed, if communities and countries want to prosper on the road ahead, we must support bold, innovative, and transformative education policies and practices. This white paper presents five guiding principles for evaluating 21st century educational policies.

This is a thought leadership paper by Mark David Milliron for education that describes the need to focus on fostering critical, creative, social and courageous learners ready and willing to face our challenges, build our economies, lead our companies and transform our schools. 

This white paper offers a framework that is based on the notion of four pillars. These four pillars (catalyzing conversations, inspiring innovation, championing insight and fostering leadership) are foundation activities that position educators to thoughtfully and more nimbly build for an increasingly dynamic future.

To improve student achievement, educators and administrators are effectively using valuable data -- through data warehousing and business analytics -- to integrate and analyze data sources in a flexible, easy-to-manage reporting environment. This white paper describes the benefits of using data-driven decision making, as well as information and case studies on SAS onsite and hosted solutions for education.

To meet global competition, a nation must spend more on education. While that is true, it is even more important how the money gets spent. There is legitimate concern in both Europe and the US that education systems are not fully preparing communities to thrive in today's knowledge-based economy. Indeed, if communities and countries want to prosper on the road ahead, we must support bold, innovative, and transformative education policies and practices. This white paper presents five guiding principles for evaluating 21st century educational policies.

This white paper discusses the drivers and the challenges in implementing a longitudinal data system. It then explores how, with SAS' Business Analytics Framework, information gaps among key educational agencies need no longer exist, and decision makers can be armed with the accurate data they need to make proactive decisions and effective education policies.

A key element of performance management is to use fact-based data, for analysis and decision support. For this reason, activity-based cost management (ABC/M) is one of the more important methodologies in performance management. This paper discusses the pressures for improved cost accounting in government, explains why there is some resistance to ABC/M and describes some successful applications of ABC/M in the public sector to date.

To support alignment and drive cultural change (including accountability and collaboration) in government, SAS recommends three key steps in this paper: 1) See it: Get an integrated, organizationwide view of all factors related to performance 2) Manage it: Align resources, strategy, finances, programs/initiatives and activities to support the agency's mission 3) Improve it: Drive results with intelligence, collaboration and accountability.

While many areas of government have successfully employed aspects of fact-based decision making, current initiatives to reduce waste and expenses correspond with what business analytics offers organizations. This white paper produced by BusinessWeek looks at how government agencies are struggling to embrace the spirit of initiatives like the President's Management Agenda and how business analytics can give them an anchor on which to operate as they search for operational agility based on deeper insights, better answers and faster reaction times geared toward the future. 

Read this white paper to learn how SAS helps governments reduce the taxpayer burden for fraud, error and abuse, ultimately allowing governments to better fund efforts for improving the lives of citizens. This paper focuses on three key areas: improper payments, purchase card fraud and Medicare/Medicaid fraud. The paper discusses how governments can develop anti-fraud strategies to improve collection rates and reduce improper payments, fraud, waste and abuse.

Government agencies are particularly susceptible to misappropriation of funds. Billions of dollars can be siphoned away from worthy programs due to process deficiencies, lack of transparency or outright fraud. This executive overview outlines five steps to identifying and preventing fraud, waste and abuse. These steps focus on gaining deeper insights into existing records of program activities and financial data.

Innovative Design of Experiments (DOE) methods can significantly reduce the number of simulations required to model biological warfare (BW) attacks. The methods illustrated by these military experts are applicable to almost any modeling and simulation (M&S) study involving large numbers of variables with many levels. They created a surrogate metamodel of the simulation with which to make suitably accurate predictions of the response output for time consuming (hours) simulation trials not yet run.

Natural resources agencies in the Americas must understand how to enhance the effectiveness of programs and policies while maintaining an adequate level of funding. This white paper describes how analytics can provide optimized solutions to these challenges. The paper first describes the use of analytics in resource management, education and CRM, operations and performance management. Ultimately, you will learn about SAS' analytic capabilities for natural resource agencies.

To meet mounting demand for service, the United States court system must use modern technologies to guide decision making, the development of public policies and communication with citizens. This white paper argues that technology, when properly conceived and implemented, is the critical component that drives opportunities for U.S. courts to demonstrate improvements in efficiency, effectiveness, communication, interagency collaboration and customer service.

More sophisticated state government revenue departments are accurately identifying and prioritizing tax returns that have a high likelihood of under-reporting and a high magnitude of potential collection by augmenting their rules-based tax auditing systems with scores generated by analytical modeling – improving audit success by as much as 20 to 50 percent. This paper describes the benefits of advanced, non-linear modeling over traditional rules-based approaches, for more precision and better rank ordering, fewer false positives, higher revenues and faster ROI.

This white paper describes ways the healthcare industry can use the data at its disposal to evolve toward more personalized medicine. In particular, you will learn about the promising possibilities of electronic medical records and powerful analytic solutions for healthcare providers from SAS. The paper also includes some real-life situations in which SAS analytics are being used to improve patient care and research.

In an effort to provide better, cost-effective care, health care providers are increasingly turning to IT-enabled business strategies. This white paper by Health Industry Insights, an IDC company, and sponsored by SAS presents the findings and analysis of in-depth interviews conducted with nine senior executives and system architects at three prestigious teaching hospitals acknowledged to be industry leaders in their use of health information technology, in general, and BI applications, in particular.

Healthcare leaders are challenged to improve care delivery, reduce costs and enhance physician and employee engagement. Doing so requires the ability to access data from a variety of siloed and disparate systems, and then to get that data into the hands of those closest to the issues. Applying business intelligence in a healthcare setting is a powerful way to break down political barriers, overcome resistance to change, align strategic priorities and improve communication. This white paper explores the ways that business intelligence and performance management software systems can facilitate evidence-based healthcare delivery in hospitals. The paper provides background on implementing business intelligence and then offers case studies demonstrating successful BI at several prominent hospitals.

A global survey of 334 executives from around the world in March 2009 by the Economist Intelligence Unit on behalf of SAS reveals that only one-third of respondents think that risk management principles in financial services remain sound, and more than half surveyed say that they have conducted, or plan to conduct, a thorough overhaul of their risk management practices. Read this paper to learn more about implications for how financial organizations are approaching risk management as a result of the financial crisis.

This research report explores how leading insurers are using business analytics solutions to reduce reaction times to competitive pressure, respond more efficiently to market changes, improve the precision and efficacy of operational decisions, and increase business managers effectiveness in driving organizational value.

SAS for Customer Experience Analytics is designed to enable insurers to tailor every customer contact and optimise value at every opportunity, from visitor arrival through web site interaction to the business response. This white paper describes the technology landscape leading up to the current demand for true, actionable multi-channel intelligence, together with the key elements required for a successful customer experience analytics solution.

It's no secret: fraud drains profits, and lax fraud management practices put a company at a competitive disadvantage. Unfortunately, there is no one bulletproof fraud-detection technique. However, multiple techniques working in concert can be very effective for detecting both opportunistic and professional/organized fraud. This paper briefly traces the evolution of fraud detection approaches, and closely examines eight techniques that insurers should include in their arsenal of anti-fraud strategies.

To survive and emerge stronger from the current financial crisis, it is essential that insurance companies implement an enterprise risk management strategy. And for any ERM project to be successful, it must be fundamentally linked to a holistic, unified approach to data management - one that ensures a smooth flow of information throughout the organization. This white paper discusses how using SAS for data management enables decision makers at all levels to see a complete picture of enterprise risk.

As in other sectors of the economy, the insurance industry has experienced many changes in information technology. Advances in hardware, software, and networks have offered benefits, such as reduced costs and time of data processing as well as increased potential for profit. Competition has also increased, making effective IT solutions even more necessary.

This paper discusses how insurance companies can benefit from modern data mining methodologies, which help companies reduce costs, increase profits, retain current customers, acquire new customers, and develop new products. You will learn about how to implement data mining projects and about changes in U.S. legislation that affect insurance firms. A list of recommended reading is also included.

Analysis of microarray data is used extensively to search for and discover clues to the molecular causes of important biological phenomena. As microarrays increase in popularity, the demand has grown for biologist-friendly applications that simplify the quality-control and analysis processes and present useful graphical representations of high-dimensional data sets. Expression Console, recently introduced by Affymetrix, provides a simple interface for normalization and summarization of data from Affymetrix CEL files to produce CHP files for further analysis. This paper explains how the Affymetrix Expression CHP Wizard in JMP Genomics automates many steps in a comprehensive microarray analysis workflow by combining an interactive interface with standard JMP Genomics tools.

Analysis of alternative splicing in expressed genes is of growing interest to researchers. While powerful, the standard 3’-biased expression microarrays do not provide a full picture of the molecular events that may be involved in disease. Apparent increases or decreases in summarized transcript levels may be due to alternative exon splicing or, conversely, differences in transcript levels due to alternative splicing may not even be detectable in a 3’-biased assay.  Affymetrix microarray platforms can measure exon-level expression levels in humans or rats, and other exon-level assays are also available. The workflow described in this white paper can be generalized for any exon analysis where there is annotation available for grouping probes or sequences at the transcript and exon level.

Pharmaceutical sales and marketing professionals face a unique set of challenges in their efforts to boost sales enough to recoup staggering development costs. This white paper explores the possibilities of data integration and advanced analytics in marketing and selling pharmaceuticals. The paper also includes a list of key analytical techniques and several industry case studies.

Most pharmaceutical companies focus their sales and marketing activities on the top-decile prescribing physicians for a given therapeutic area, based on purchased data. But such practices are no longer yielding desired results. This white paper discusses why now is the right time to make sales and marketing decisions based on deeper analytic insights - using predictive modeling - and how organizations that take control over their own physician targeting will get more timely insights, targeting decisions aligned with business issues and real competitive advantage.

Release 3.1 of JMP Genomics software from SAS adds specific menu items for copy number analysis. In this white paper, we will review a simple JMP Genomics workflow to determine differences in copy number or B-allele frequencies. These workflows have been tested on Illumina DNA Analysis BeadChips, including the Human1M DNA Analysis BeadChips.

Statistical methods and software available for identifying common and rare copy number variations (CNVs) are still evolving. Here, tools in JMP Genomics 4 were used to find shared regions of CNV and correlate SNP intensities with gene expression differences. A similar approach can be applied to examine pairwise correlations between other genomic measures.

Effective performance management integrates an enterprisewide framework of associated methodologies and supporting software. In this paper published by Manufacturing Business Technology ("Alert"), the value and benefits of integrated performance management throughout the manufacturing organization is explored, along with the roles of predictive modeling and analytics to operate a circulatory and simultaneous system for proactive decision support and planning.

This white paper discusses multi-causal analysis as a way of integrating consumer demand information with shipment forecasts to capture the impact of marketing activities on shipments. With improvements in technology, data collection, data storage and analytical knowledge, CPG companies are now looking to integrate consumer demand with their shipment forecasts to capture the impact of marketing activities on shipments. As a result, multi-tiered causal analysis (MTCA) is receiving renewed interest. This paper explains the MTCA process, including an anonymous beverage industry case study that describes the process used to develop and link the Consumer Demand and Factory Shipment models. The by-product of this process was a more accurate forecast that reflected the company's marketing investment strategy.

Service organizations an increasingly important source of revenue for many companies. For these organizations, better methods for forecasting warranty reserves and accruals mean greater efficiency and profitability. This paper outlines some of the pitfalls of traditional methods for allocating warranty reserves, the best practices that can transform the process, and the significant monetary gains that can be achieved by improving the accuracy and adaptability of warranty reserve forecasts.

This paper introduces a Process Analytical Technology (PAT) maturity model that maps various tools and methodologies that can help you understand the drivers of product quality and, as a result, reduce defects. In particular, you will learn about pragmatic data analysis and reporting approaches that improve mainstream users' understanding of manufacturing processes.

Manufacturing and supply chain organizations must not only optimize resources and minimize waste, but also predict future growth and demand. Event-handling and transactional systems cannot merge data into an integrated source of business intelligence; organizations need adequate data management, forecasting, optimization and modeling techniques to bring disparate data together and gather useful intelligence from it. With key performance indicators and process metrics that span functional areas, managers and other stakeholders can see changes and trends as they occur and make business decisions based on those indicators.

Manufacturing and supply chain organizations must not only optimize resources and minimize waste, but also predict future growth and demand. Event-handling and transactional systems cannot merge data into an integrated source of business intelligence; organizations need adequate data management, forecasting, optimization and modeling techniques to bring disparate data together and gather useful intelligence from it. With key performance indicators and process metrics that span functional areas, managers and other stakeholders can see changes and trends as they occur and make business decisions based on those indicators.

This white paper discusses multi-causal analysis as a way of integrating consumer demand information with shipment forecasts to capture the impact of marketing activities on shipments. With improvements in technology, data collection, data storage and analytical knowledge, CPG companies are now looking to integrate consumer demand with their shipment forecasts to capture the impact of marketing activities on shipments. As a result, multi-tiered causal analysis (MTCA) is receiving renewed interest. This paper explains the MTCA process, including an anonymous beverage industry case study that describes the process used to develop and link the Consumer Demand and Factory Shipment models. The by-product of this process was a more accurate forecast that reflected the company's marketing investment strategy.

Manufacturing and supply chain organizations must not only optimize resources and minimize waste, but also predict future growth and demand. Event-handling and transactional systems cannot merge data into an integrated source of business intelligence; organizations need adequate data management, forecasting, optimization and modeling techniques to bring disparate data together and gather useful intelligence from it. With key performance indicators and process metrics that span functional areas, managers and other stakeholders can see changes and trends as they occur and make business decisions based on those indicators.

Retailers are commonly faced with the challenge of forecasting demand for items that are sold only at certain times of the year, but in high volumes. This paper suggests a compression approach for dealing with these kinds of highly seasonal forecasts using SAS software, which could produce more accurate results than forecasts based on standard time series modeling. It provides an illustrative example based on real-life data. 

Competition in retail is ever more intense as companies face slow domestic growth, rapid increases in selling space, and new and innovative channels and formats. To achieve merchandising dominance, it is critical to improve core merchandising processes.

This white paper will give you a head start in evaluating the potential of revenue optimization to deliver significant, sustainable profit improvements. You will learn about the key components of revenue optimization, the steps required to implement such a system and the lessons learned by several companies who have already implemented this technology.

This white paper looks at a proof-of-value (POV) process that a pragmatic organization embarked on with SAS to better understand how SAS forecasting and inventory optimization could improve the results from an already installed enterprise resource planning system. It not only shows surprising results, it provides a layman's pathway to attaining those results.

With the advent of the smart grid infrastructure, including smart metering and demand response mechanisms, Utilities are challenged to find the best way to use the huge volumes of smart grid data to analyze and forecast demand.  This paper offers views on the most effective ways to integrate, store, manage and analyze advanced metering infrastructure (AMI) and smart metering data.

Data integration, risk assessment and quantification of uncertainty are key issues in petroleum exploration and development. Oil companies are being forced to explore in more geologically complex and remote areas to exploit deeper hydrocarbon deposits. As the problems become too complex in areas of intrinsically poor data quality, and the cost associated with poor predictions (dry holes) increases, the need for proper integration of disciplines, data fusion, risk reduction and uncertainty management become very important. SAS Analytics provide potential answers to questions related to risk and uncertainty, as well as endorse reserves information and ensure that exploitation plans are adhered to in accordance to predefined targets. With SAS Analytics, you can use a plethora of upstream data to empower effective, efficient and timely decisions that affect reserves exploitation.

Oil and gas companies invested heavily in ERP and DCS systems, which brought about increased efficiency. But when global business dynamics – driven by increased data volumes and changes in transaction infrastructures, decision patterns and performance criteria – began to shift from the status quo attitude of  "let things run by themselves," proactive planning and decision making took on greater importance as a way to adapt to change and gain competitive advantage. This white paper focuses on a four-layer model for regaining the benefits of ERP and DCS systems by enabling organizations to make full use of their corporate information and knowledge.