Difference between revisions of "Credit Scorecard Strategy Curve"
From Open Risk Manual
Wiki admin (talk | contribs) (Created page with "== Definition == A '''Strategy Curve''' (also ''Strategy Table'') is numerical/visual schedule of the expected Default Rate or Expected Loss rate for a given Credit...") |
(No difference)
|
Latest revision as of 21:01, 11 September 2020
Definition
A Strategy Curve (also Strategy Table) is numerical/visual schedule of the expected Default Rate or Expected Loss rate for a given Credit Scorecard Cut-Off Score, versus the corresponding acceptance (or equivalently rejection rate).
The strategy curve is a tool to support Cost Benefit Analysis, juxtaposing the cost (of credit losses) against the benefit of extending credit.
