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Private Individuals: Credit Risk Modeling

  • Corrado Giannasca
  • Tommaso Giordani
Part of the Palgrave Macmillan Studies in Banking and Financial Institutions book series (SBFI)

Abstract

In the old good days, the main innovation in banking was air conditioning. Since then, the financial industry has experienced many changes. Of those changes, statistical credit risk modeling is one of the most influential. Retail banking strategy has evolved toward a profit maximizing, industrial processing model where efficiency, speed, and control are key success factors. In this context, senior management has been very receptive to the development of a statistical decision framework.1 Increasingly complex laws and regulations have also required the need for a formalized risk measurement and control framework. In addition, the diversification by both countries and products has added further intricacies. In this chapter, we assess the pros and cons of credit risk modeling for operational processes, policy definitions, business goal setting, and organizational change. We leave the statistical and analytical aspects of the modeling to the well established technical literature.

Keywords

Credit Risk Senior Management International Financial Reporting Standard Private Individual Consumer Credit 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© Corrado Giannasca and Tommaso Giordani 2013

Authors and Affiliations

  • Corrado Giannasca
  • Tommaso Giordani

There are no affiliations available

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