Session 1:  Introduction to Corporate Governance

Session 2:  Lending and Consumer Credit Environment

• The consumer credit environment
• Business economic indicators
• Lending policies, lending strategies, lending systems
• Organizational functions and credit cycles

Session 3:  The Basic Ideas: Origins & Principles

•  What credit scoring is?
• Why credit scoring is used?
• Business context
• Integration of credit scoring
• Limitation of credit scoring
• Relationship to risk appetite

 Session 4:  Data and Databases

• The nature of data – quality and quantity
• Historic nature of data
• Generic data sources
• Application form data
• Record keeping and legal requirements
• Credit reference data
• Uses of financial data
• Databases: Customer; account; application; behavioural; etc databases
• Decision engines and MI requirements
• Keeping data up to date

 Session 5:  Strategic Credit Management

• Governance – credit policy and credit committee role
• Credit policy manuals
• Product credit policies
• Risk appetite, capital requirements and provisioning
• Portfolio management
• Key management reports – debt analysis, life-cycle effect, new accounts effect

Session 6:  Application Scorecards

• Principles of scoring
• Scorecard development
• Feasibility studies and sample definitions
• The principle sets – ‘good and bad’
• Validation of data
• Data assembly
• Creating characteristics and attributes
• Analysis of data
• Scorecard modeling
• Scorecard validation and diagnostics
• Divergence – measuring the distance between goods and bad

 Session 7:  Behavioural Scorecards

• Behavioural scoring
• Types of behavioural scorecards
• Developing account level behavioural scorecards
• Creating characteristics and attributes
• Developing an account management scorecard
• Developing a collections scorecard
• Recoveries scorecards
• Transaction fraud scorecards
• Customer scoring – what is it?
• Scorecard development issues

 Session 8:  Scorecards for Credit Marketing

• What is customer relationship management?
• Generating credit applications
• Pre-screening/pre-approval risk scorecards
• Post acquisition marketing scorecards
• Retention and revenue scorecards
• Integrating risk and marketing

Session 9:  Financial Forecasting and Basel Rating Models

• Forecasting bad debts
• Model applications and limitations
• Basel rating models
• Validation

Session 10:  New Application Credit Strategies

• Strategy setting
• Accept-reject cut-off
• Setting limits
• Setting product facilities/conditions
• Policy rules, referrals and overrides
• Scoring or manual decision making
• Strategy and scorecard monitoring
• Population stability
• Characteristic analysis
• Cross selling
• Early redemption
• Cost of management
• Monitoring new applications
• Risk to score relationships
• Measuring the impact of overrides

Session 11:  Delinquent Account Management

• Terminology
• Reasons for delinquency
• Organizational structure
• Collections – pre-delinquency; early collections
• Investigations and recoveries
• Customer handling policies
• Action plans and customer payment strategies
• Organizing departmental activities
• Managing the collector resource
• Use of external agents

Session 12:  New Application Credit Strategies

• Why use behavioural scoring
• Account level strategy setting
• Limit strategies
• Shadow limits
• Target limits
• Card authorizations
• Personal loan authorizations
• Collections strategies
• Collections action plans
• Customer level strategy setting
• Scorecard monitoring
• Systems infrastructure requirements

Course delegates will obtain a full, detailed and above all, practical appreciation of the challenges facing the credit scoring process and will be able to apply a mixture of hands on and automated skills by the finish.  Specifically, delegates will consider:

• Lending refresher
• Basic ideas: origins & principles
• Fixing a cut off using scorecard statistics
• How good is the scorecard: analysing performance
• Where has my population gone: tracking applicant profiles
• Does my scorecard still work: tracking scorecard performance
• What is in a score? The policy framework
• Strategy analysis
• Not getting lost: portfolio management
• The strategic use of scoring

Delegates who complete the course will receive a Certificate with equivalent CPD/CPE credits via email; and for those who require an assessment as a demonstration of competency via training a 20 multiple-choice questions and answers quiz, remotely invigilated with results report and 1 resit, is available at no additional charge when requested at time of reservation

Highly interactive expert-led intensive presentation, Q&A, group real-time in-depth case studies, regulation and discussion supported by key principles and theory. The virtual learning platform uses safe, industry preferred encrypted Cisco WebEx to optimize live face-to-face visual interaction, discrete chat, for polling and quizzes.

(An invitation via email with access link is included for all participants.)