Credit Scorecard Taxonomy

From Open Risk Manual

Credit Scorecard Taxonomy

There are many Credit Scorecard types. The following categories break them down to the main classes by: usage, type of input, type of output, manner of development and algorithm used (if any)

By usage

Credit scorecards may be used for a number of distinct business activities across the Credit Life Cycle

By type of Data Input

By type of Output

A scorecard might produce as output:

By nature of development

Broadly speaking, credit scorecards can be divided into two development type categories

In practice quantitative scorecards will admit also expert based adjustments (Overrides) that aim to incorporate additional information not captured by the scorecard but potentially available to the decision maker

By algorithm

Quantitative scorecards employ one of several possible algorithmic classes (For complete list see Credit Scoring Models), e.g. linear discriminant analysis, logistic regression, decision trees etc.

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