|
|
Scores enable you to evaluate a customer's performance
against multiple risk profiles defined in scorecards A scorecard uses one or more algorithms to assess credit risk, and then
provides a score that is a risk indicator. Scorecards can be created by
the eCredit Professional Services Organization, or you can provide your
own scorecard for integration into the automated decision process for
eCredit..
Scorecards automate your credit policies and apply them consistently.
You can use different scorecards to target groups of customers with unique
credit risk factors.
You can provide your own scorecard for integration
into the automated decision process for eCredit, or request scorecards
from eCredit.
This is how a scorecard works:
Criteria are defined
for the scorecard. Criteria are the characteristics you want to measure.
For example: financials or management quality. Each criterion has
factors that define it. Factors are database entries. For example: factors
related to a financial criterion might be current ratio, or debt to net
worth ratio. For each factor,
ranges are specified. Ranges are groups of values that could exist in
a customer record. Each range is assigned points. Criteria and factors
are given weights to indicate their relative importance in your credit
decision process. These weights are percentages. Scorecards can also be
given weights when more than one scorecard is used. To determine a score,
the scorecard assigns points based on the values found in the customer
record at the time of scoring. The points are added to calculate the score.
The weights are assigned to each raw score to determine the weighted score.
Using the score, a formula on file for each model associated with the
scorecard can determine a suggested credit limit. |
