Neutral Score

Definition

Neutral Score is the attribute value of a Risk Factor (in the context of a Credit Risk models such as a Credit Scorecard) that, if used by itself, separates the range of that characteristic into positive and negative Weight of Evidence regions.

The primary use of the neutral score is for internal and external communication of the scorecard behavior.

Issues and Challenges

• The score must be monotonic in the characteristic value

See Also

• Credit Scorecard Explainability