Credit Scorecard Explainability

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Definition

Credit Scorecard Explainability refers to the ability of explaining / interpreting the results of an Automated Credit Decision Process that is using a Credit Scorecard. The requirements of explainability may be entrenched in law, or be necessary business requirements to satisfy internal management accountability or interaction with clients

Elements

Explainability may refer to a number :

  • the reasonableness and motivation the overall outcome of the scorecard
  • the role of individual model elements, e.g. characteristics (weight, sensitivity)
  • the role of Risk Data in influencing the model outcome
  • the role of any other aspects (e.g. calibrations)