{"product_id":"intelligent-credit-scoring-isbn-9781119279150","title":"Intelligent Credit Scoring","description":"\u003cb\u003eA better development and implementation framework for credit risk scorecards\u003c\/b\u003e \u003cp\u003e\u003ci\u003eIntelligent Credit Scoring\u003c\/i\u003e presents a business-oriented process for the development and implementation of risk prediction scorecards. The credit scorecard is a powerful tool for measuring the risk of individual borrowers,  gauging overall risk exposure and developing analytically driven, risk-adjusted strategies for existing customers. In the past 10 years, hundreds of banks worldwide have brought the process of developing credit scoring models in-house, while ‘credit scores' have become a frequent topic of conversation in many countries where bureau scores are used broadly. In the United States, the ‘FICO' and ‘Vantage' scores continue to be discussed by borrowers hoping to get a better deal from the banks. While knowledge of the statistical processes around building credit scorecards is common, the business context and intelligence that allows you to build better, more robust, and ultimately more intelligent, scorecards is not. As the follow-up to \u003ci\u003eCredit Risk Scorecards\u003c\/i\u003e, this updated second edition includes new detailed examples, new real-world stories, new diagrams, deeper discussion on topics including WOE curves, the latest trends that expand scorecard functionality and new in-depth analyses in every chapter. Expanded coverage includes new chapters on defining infrastructure for in-house credit scoring, validation, governance, and Big Data. \u003c\/p\u003e\u003cp\u003eBlack box scorecard development by isolated teams has resulted in statistically valid, but operationally unacceptable models at times. This book shows you how various personas in a financial institution can work together to create more intelligent scorecards, to avoid disasters, and facilitate better decision making. Key items discussed include: \u003c\/p\u003e\u003cul\u003e \u003cli\u003eFollowing a clear step by step framework for development, implementation, and beyond\u003c\/li\u003e \u003cli\u003eLots of real life tips and hints on how to detect and fix data issues\u003c\/li\u003e \u003cli\u003eHow to realise bigger ROI from credit scoring using internal resources\u003c\/li\u003e \u003cli\u003eExplore new trends and advances to get more out of the scorecard\u003c\/li\u003e \u003c\/ul\u003e \u003cp\u003eCredit scoring is now a very common tool used by banks, Telcos, and others around the world for loan origination, decisioning, credit limit management, collections management, cross selling, and many other decisions. \u003ci\u003eIntelligent Credit Scoring\u003c\/i\u003e helps you organise resources, streamline processes, and build more intelligent scorecards that will help achieve better results. Acknowledgments xiii \u003c\/p\u003e\u003cp\u003e\u003cb\u003eChapter 1 Introduction 1\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eScorecards: General Overview 9\u003c\/p\u003e \u003cp\u003eNotes 18\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 2 Scorecard Development: The People and the Process 19\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eScorecard Development Roles 21\u003c\/p\u003e \u003cp\u003eIntelligent Scorecard Development 31\u003c\/p\u003e \u003cp\u003eScorecard Development and Implementation Process: Overview 31\u003c\/p\u003e \u003cp\u003eNotes 34\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 3 Designing the Infrastructure for Scorecard Development 35\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eData Gathering and Organization 39\u003c\/p\u003e \u003cp\u003eCreation of Modeling Data Sets 41\u003c\/p\u003e \u003cp\u003eData Mining\/Scorecard Development 41\u003c\/p\u003e \u003cp\u003eValidation\/Backtesting 43\u003c\/p\u003e \u003cp\u003eModel Implementation 43\u003c\/p\u003e \u003cp\u003eReporting and Analytics 44\u003c\/p\u003e \u003cp\u003eNote 44\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 4 Scorecard Development Process, Stage 1: Preliminaries and Planning 45\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eCreate Business Plan 46\u003c\/p\u003e \u003cp\u003eCreate Project Plan 57\u003c\/p\u003e \u003cp\u003eWhy “Scorecard” Format? 60\u003c\/p\u003e \u003cp\u003eNotes 61\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 5 Managing the Risks of In-House Scorecard Development 63\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eHuman Resource Risk 65\u003c\/p\u003e \u003cp\u003eTechnology and Knowledge Stagnation Risk 68\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 6 Scorecard Development Process, Stage 2: Data Review and Project Parameters 73\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eData Availability and Quality Review 74\u003c\/p\u003e \u003cp\u003eData Gathering for Definition of Project Parameters 77\u003c\/p\u003e \u003cp\u003eDefi nition of Project Parameters 78\u003c\/p\u003e \u003cp\u003eSegmentation 103\u003c\/p\u003e \u003cp\u003eMethodology 116\u003c\/p\u003e \u003cp\u003eReview of Implementation Plan 117\u003c\/p\u003e \u003cp\u003eNotes 118\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 7 Default Definition under Basel 119\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eIntroduction 120\u003c\/p\u003e \u003cp\u003eDefault Event 121\u003c\/p\u003e \u003cp\u003ePrediction Horizon and Default Rate 124\u003c\/p\u003e \u003cp\u003eValidation of Default Rate and Recalibration 126\u003c\/p\u003e \u003cp\u003eApplication Scoring and Basel II 128\u003c\/p\u003e \u003cp\u003eSummary 129\u003c\/p\u003e \u003cp\u003eNotes 130\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 8 Scorecard Development Process, Stage 3: Development Database Creation 131\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eDevelopment Sample Specification 132\u003c\/p\u003e \u003cp\u003eSampling 140\u003c\/p\u003e \u003cp\u003eDevelopment Data Collection and Construction 142\u003c\/p\u003e \u003cp\u003eAdjusting for Prior Probabilities 144\u003c\/p\u003e \u003cp\u003eNotes 148\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 9 Big Data: Emerging Technology for Today’s Credit Analyst 149\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eThe Four V’s of Big Data for Credit Scoring 150\u003c\/p\u003e \u003cp\u003eCredit Scoring and the Data Collection Process 158\u003c\/p\u003e \u003cp\u003eCredit Scoring in the Era of Big Data 159\u003c\/p\u003e \u003cp\u003eEthical Considerations of Credit Scoring in the Era of Big Data 164\u003c\/p\u003e \u003cp\u003eConclusion 170\u003c\/p\u003e \u003cp\u003eNotes 171\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 10 Scorecard Development Process, Stage 4: Scorecard Development 173\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eExplore Data 175\u003c\/p\u003e \u003cp\u003eMissing Values and Outliers 175\u003c\/p\u003e \u003cp\u003eCorrelation 178\u003c\/p\u003e \u003cp\u003eInitial Characteristic Analysis 179\u003c\/p\u003e \u003cp\u003ePreliminary Scorecard 200\u003c\/p\u003e \u003cp\u003eReject Inference 215\u003c\/p\u003e \u003cp\u003eFinal Scorecard Production 236\u003c\/p\u003e \u003cp\u003eChoosing a Scorecard 246\u003c\/p\u003e \u003cp\u003eValidation 258\u003c\/p\u003e \u003cp\u003eNotes 262\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 11 Scorecard Development Process, Stage 5: Scorecard Management Reports 265\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eGains Table 267\u003c\/p\u003e \u003cp\u003eCharacteristic Reports 273\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 12 Scorecard Development Process, Stage 6: Scorecard Implementation 275\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003ePre-implementation Validation 276\u003c\/p\u003e \u003cp\u003eStrategy Development 291\u003c\/p\u003e \u003cp\u003eNotes 318\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 13 Validating Generic Vendor Scorecards 319\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eIntroduction 320\u003c\/p\u003e \u003cp\u003eVendor Management Considerations 323\u003c\/p\u003e \u003cp\u003eVendor Model Purpose 326\u003c\/p\u003e \u003cp\u003eModel Estimation Methodology 331\u003c\/p\u003e \u003cp\u003eValidation Assessment 337\u003c\/p\u003e \u003cp\u003eVendor Model Implementation and Deployment 340\u003c\/p\u003e \u003cp\u003eConsiderations for Ongoing Monitoring 341\u003c\/p\u003e \u003cp\u003eOngoing Quality Assurance of the Vendor 351\u003c\/p\u003e \u003cp\u003eGet Involved 352\u003c\/p\u003e \u003cp\u003eAppendix: Key Considerations for Vendor Scorecard Validations 353\u003c\/p\u003e \u003cp\u003eNotes 355\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 14 Scorecard Development Process, Stage 7: Post-implementation 359\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eScorecard and Portfolio Monitoring Reports 360\u003c\/p\u003e \u003cp\u003eReacting to Changes 377\u003c\/p\u003e \u003cp\u003eReview 399\u003c\/p\u003e \u003cp\u003eNotes 401\u003c\/p\u003e \u003cp\u003eAppendix A: Common Variables Used in Credit Scoring 403\u003c\/p\u003e \u003cp\u003eAppendix B: End-to-End Example of Scorecard Creation 411\u003c\/p\u003e \u003cp\u003eBibliography 417\u003c\/p\u003e \u003cp\u003eAbout the Author 425\u003c\/p\u003e \u003cp\u003eAbout the Contributing Authors 427\u003c\/p\u003e \u003cp\u003eIndex 429\u003c\/p\u003e   \u003cp\u003e\u003cb\u003eNAEEM SIDDIQI\u003c\/b\u003e is the Director of Credit Scoring and Decisioning with SAS\u003csup\u003e®\u003c\/sup\u003e Institute. He has more than twenty years of experience in credit risk management, both as a consultant and as a user at financial institutions. He played a key role in developing SAS\u003csup\u003e®\u003c\/sup\u003e Credit Scoring and continues to provide worldwide support for the initiative.   \u003c\/p\u003e\u003cp\u003eIn-house scorecard development is not only a rapidly growing trend, it is also faster and less expensive, and enables companies to create better-performing scorecards by applying firsthand knowledge of internal data and business insights. \u003ci\u003eIntelligent Credit Scoring\u003c\/i\u003e takes you beyond the technical part of building scorecards and shows you how to apply business intelligence to the process in order to solve business problems.\u003c\/p\u003e\u003cp\u003eThis extensively updated and expanded \u003ci\u003eSecond Edition\u003c\/i\u003e incorporates the latest best practices and advances into its flexible framework for end-to-end development and implementation of risk-prediction scorecards. Specifically written for heads of risk modeling, credit risk managers, scorecard developers, and CROs operating in the real world, this highly practical guide features new cases and fresh voices from a variety of companies all over the world, diagrams and up-to-date examples of binning and bias detection using Weight of Evidence (WoE) curves, and more in-depth analysis in every chapter. By taking a business-oriented approach to the scorecard, a variety of people throughout the financial institution can contribute their insights to generate a dependable, customized tool for accurate risk avoidance and enhanced decision making. One of the most powerful features of this framework is the risk profile, which integrates predictive variables into the scorecard in order to replicate the thought processes of skilled risk adjudicators. In addition to optimizing your bottom line, the framework is also designed to produce scorecards in full compliance with Basel II requirements. If you still keep the first edition on hand for everyday practice, this revised edition will quickly take its place for providing:\u003c\/p\u003e\u003cul\u003e\n\u003cli\u003eA behind-the-scenes look at how the end-to-end process plays out in the real world using sample data  \u003c\/li\u003e\n\u003cli\u003eAll-new coverage on producing an end-to-end infrastructure for scorecard development, governance, and integration\u003c\/li\u003e\n\u003cli\u003eDetailed coverage of how to validate and manage vendor-built scorecards\u003c\/li\u003e\n\u003c\/ul\u003e\u003cp\u003e\u003ci\u003eIntelligent Credit Scoring, Second Edition\u003c\/i\u003e is your one-stop solution for maximizing your intelligent resources, streamlining processes, and building smarter scorecards for achieving business results.\u003c\/p\u003e","brand":"Wiley","offers":[{"title":"Default Title","offer_id":47989440446693,"sku":"NP9781119279150","price":52.0,"currency_code":"USD","in_stock":false}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/1842\/7735\/files\/9781119279150.jpg?v=1761784106","url":"https:\/\/k12savings.com\/es\/products\/intelligent-credit-scoring-isbn-9781119279150","provider":"K12savings","version":"1.0","type":"link"}