Reverse Reengineering of Risk

When credit-risk scoring came into usage in the 1970s, it ushered in an era of science-based decision making that was primed to end the judgmental and biased lending decisions of the past. As the recent mortgage crisis has exposed, the science of risk scoring needs some tweaking. The industry needs to add critical measures of [...]

Reverse Reengineering of Risk

Reverse Reengineering of Risk The writedowns and bailouts are legendary, but some industry experts argue the credit crisis didn’t have to happen. Simply put, an overdependence on technology and absence of judgment fanned the flames that have burned investors and taxpayers alike. It began with traditional credit scoring and analytics that made some pretty silly [...]