Credit Risk Management for New Accounts

The profitability of your portfolio depends on how well you manage the credit risk for new accounts.  In this online course, Elina Rodriguez provides an overview of credit risk, the importance of managing this risk, and how scorecards (analytical tools) can help you identify the most trust-worthy applicants.  You will also learn how to design, develop and utilize scorecards so that you can help your organization devise approval strategies that control risk while maximizing approvals./p>

1 course, 45 minutes, 6 month unlimited access after purchase.

Key Topics:

  1. Credit Risk: What is the definition of credit risk and how does it impact an issuer’s bottom line?
  2. Credit Risk Management: Learn about the importance of managing credit risk when designing your product offer, targeting potential customers and understanding the balance between risk and reward.
  3. Tools for Credit Risk Management: Learn about the various analytical tools (“scorecards”) that are available in the market, or that you can custom-develop, to identify the most creditworthy applicants.
  4. User Issues Related to Scorecard Development: What is involved in developing a customized or empirically derived scorecard? What are important design elements and considerations in order to develop the most effective tool for your portfolio? Find out in this module.
  5. Scorecard Development: What type of information is included in scorecards? What optimization techniques are utilized to select and incorporate predictive variables and how do you measure the predictive strength of a scorecard? An example scorecard is provided.
  6. Scorecard Implementation: Learn how to incorporate a scorecard into your new account approval process – setting score cut-offs, overriding the score’s recommendation, risk-based pricing, and determining the initial line amount.

Who Should View

Middle and senior management personnel involved in strategy and business planning, marketing, risk management, systems and operations

Course Details:

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  • English
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