Credit Scorecard Development and Implementation
Business Knowledge Series
presented by Naeem Siddiqi , a global Expert in credit scoring
24 & 25 January 2017| 8:30 a.m. - 4:30 p.m.
University of Cyprus , The Department of Accounting and Finance
Presented by Naeem Siddiqi, Director, Credit Scoring and Decisioning in the Risk and Quantitative Solutions Division at SAS, and author of Credit Risk Scorecards
This business-focused 2-days 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.
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
- creating scorecard and portfolio monitoring reports
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:
This course addresses SAS 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.
Director, Credit Scoring & Decisioning in the Risk & Quantitative Solutions Division
BEng (Hons); Imperial College of Science, Technology and Medicine, University of London
MBA; Schulich School of Business, York University
Languages spoken: Urdu, Malay, English
Using SAS since 1992 & Teaching SAS since 2004
Naeem has worked in retail credit risk management since 1992, both as a trusted advisor, and a risk manager at financial institutions. He has trained hundreds of bankers in over 20 countries on the art and science of credit scorecard development, and helps credit risk analysts develop better scorecards. Naeem meets with risk decision makers in between 40-50 banks globally each year, and provides strategic advice to them on areas ranging from credit scoring and credit analytics strategy, to setting up and planning for internal analytics capability and retail credit risk strategy. At SAS, Naeem has played a key role in the development of SAS's Credit Scoring capabilities, and is currently the Director of Credit Scoring and Decisioning in the Risk and Quantitative Solutions Division at SAS. His main responsibilities include designing products that solve current and anticipated banking analytics problems and providing strategic advice to bankers. He also provides assistance during strategic sales opportunities by helping to understand problems faced by banks, and designing appropriate solutions for them.
- Credit Risk Scorecards : Developing and Implementing Intelligent Credit Scoring
- Reject Inference Techniques Implemented in Credit Scoring for SAS Enterprise Miner
- Improving Credit Risk Scorecards with Memory-Based Reasoning to Reject Inference with SAS Enterprise Miner
- Building Loss Given Default Scorecard Using Weight of Evidence Bins in SAS Enterprise Miner
- Creating Interval Target Scorecards with Credit Scoring for SAS Enterprise Miner
Invited speaker at conferences
- SAS Global Forum
- The Credit Scoring and Risk Strategy Association
- The Canadian Mortgage Brokers and Lenders Association
- The Taiwan Academy of Banking and Finance
Books: Credit Risk Scorecards: Developing and Implementing Intelligent Credit Scoring; Credit Scoring for Risk Managers: The Handbook for Lenders; The Management of Consumer Credit: Theory and Practice; Credit Risk Management: Basic Concepts
Discussion forums: Credit Scoring Forum, Credit Scorecard Developers
What students are saying:
"This course is very practical, closely related to the credit risk scoring project that I am currently involving in. The instructor has a lot of experience in banking industry, which is very good, and can give me tons of business insights."
"The business-focused aspects of the course makes the course very interesting. The instructor's rich experience in the business broadened my sight in this area."
"I think Naeems real life experience with scorecards provided the opportunity to get relevant examples and led to very meaningful discussions. I believe Naeem himself is the most positive aspect of this course."
What is the best part about teaching?
I love the interactions with students and the fresh ideas they bring. Teaching internationally gives me the opportunities to learn about the different ways people tackle the same problems, with the various risk cultures in place.
Do you have any hobbies, favorite activities, or hidden talents?
I am passionate about social justice issues, and volunteer with several organizations involved in funding youth initiatives to reduce school dropout rates in Toronto.
Are you passionate about a particular sports team?
The cause of my few sports related joys, and most of the stress, are the Toronto Maples Leafs and the Pakistani cricket team.