The Credit Scoring Toolkit: Theory and Practice for Retail Credit Risk Management and Decision Automation

by Raymond Anderson

Overview

Credit scoring aims to quantify the likelihood of a prospective borrower defaulting on payment over a specified period of time. The credit score is calculated using increasingly sophisticated statistical models, which vary considerably between individual cases. This clearly-written and comprehensive text covers the scorecard development process and provides a practical how-to guide for those wanting to use and develop credit scoring techniques.

Assuming little prior knowledge, the text includes the relevant statistical and mathematical tools, numerous real-life examples, and discussion of the credit risk management cycle and the importance of credit scoring in business and regulatory environments, including Basel II.

An extensive glossary and bibliography make this an indispensable desktop reference for graduate students in statistics, business, economics and finance, MBA students, credit risk and financial practitioners.

Product Details

ISBN-13:	9780199226405
Publisher:	Oxford University Press, USA
Publication date:	10/18/2007
Edition description:	New Edition
Pages:	792
Product dimensions:	9.70(w) x 7.30(h) x 1.90(d)

Table of Contents

Preface
A Setting the scene
1. Credit scoring and the business
2. Credit micro-histories
3. The mechanics of credit scoring
B Risky business
4. The theory of risk
5. Decision science
6. Assessing enterprise risk
C Stats and Maths
7. Predictive statistics 101
8. Measures of separation/divergence
9. Odds and ends
D Data!
10. Data considerations and design
11. Data sources
12. Scoring structure
13. Information sharing
14. Data preparation
E Scorecard development
15. Transformation
16. Characteristic selection
17. Segmentation
18. Reject inference
19. Scorecard calibration
20. Validation
21. Development management issues
F Implementation and use
22. Implementation
23. Overrides, referrals, and controls
24. Monitoring
25. Finance
G Risk management cycle
26. Marketing
27. Application processing
28. Account management
29. Collection and recoveries
30. Fraud
H Regulatory environment
31. Regulatory concepts
32. Data privacy and protection
33. Anti-discrimination
34. Fair lending
35. Capital adequacy
36. Know your customer (KYC)
37. National differences
Z Reference materials
38. Glossary / Dictionary
39. Bibliography
40. Appendices
Index