2005 Training Courses
1 & 2 December 2005 - Retail Lending Credit Scoring
General Information
Time: 9:00am to 5:00pm
Venue: The Grace Hotel, Balinga Room, 1st Floor, 77 York Street, Sydney.
Registration Fees
RMA Members: A$1,254 (inc. GST)
Non-Members: A$1,353 (inc. GST)
Course Overview
The consistent application of credit policies is a fundamental premise of lending. The need for consistency, combined with availability of consumer and commercial credit information, has created many applications for credit scoring. Scoring is now heavily used in applications processing, account management, and collections, as well as in revenue-generating activities, including the assessment of revenue and profitability potential.
This course discusses all major aspects of credit scoring, from data preparation and variable selection to score deployment, management, and monitoring. All the practical details you need about credit scoring are included, helping you to understand both the philosophy and the practice. The implementation of credit scoring in emerging markets will also be covered. In addition, we know that customer information is an issue in Asian markets and we will explore solution to this challenge.
Who Will Benefit?
This course is ideal for risk managers and credit professionals who need to understand in practical terms every aspect of a credit-scoring system; whether it's building a score or managing its development. Modellers and analysts will learn the specific characteristics of credit data, including limitations and modelling techniques. Marketing and finance professionals will also benefit, as scoring is considered is part of decision science now being applied in these fields as well.
You will:
- Learn the fundamentals of credit scoring:
- Assembling data.
- Selecting variables.
- Building scores.
- Evaluating scores.
- Validating scores.
- Monitoring performance.
- Gain an appreciation for credit scoring as a subset of the credit decisioning process.
- Hear about the best practices in score development.
- Learn to manage the limitations and challenges in score development.
- Become familiar with the organisational requirements for implementing scoring.
- Learn to differentiate the "art" from the "science" in credit scoring.
- Review applications of scoring to marketing, profitability measurement, and collections, as well as current account management (behavioural scoring).
- Participate in hands-on score development exercises.
- Learn to develop or manage score development projects.
- Become sensitised to banking/credit infrastructural differences across countries that create unique challenges when implementing scoring.
Prerequisites
Participants should have some previous exposure to scoring (or some form of credit decisioning) and have experience as an analyst in the banking or financial services industry. They should have some familiarity with building models in banking.
Instructors
Frank Saavedra-Lim, Director, Global Financial Services, leads Strategic Analytics, client management and support efforts. He is currently applying his extensive experience in Banking and Financial Risk Management to Strategic Analytics' product development and expansion into Asian markets.
Mr Lim is a financial risk management executive with over 18 years of experience of innovation in advanced analytics applied in the aerospace and financial services industries. Mr. Lim was founder and CEO of Financial Risk Technologies, Inc., a global financial services consulting firm specialising in consumer and commercial credit risk management founded in 2001. As principal consultant he led projects that included the creation of strategic alliances with largest consumer credit bureaus for ASP-based clients, designing consumer credit data private data exchanges, and development of strategy, customer segmentation, and credit risk models for top 10 credit card firms, Mr. Lim was SVP Credit Technologies Officer, at American Express where he managed commercial lending operations between 2000 and 2002.
Mr. Lim held senior management positions at Signet Banking Corporation, Pitney Bowes Financial Services, and First Sierra Financial where he pioneered new developments in risk management and finance which include the design of an "Online Finance Centre" supporting eCommerce, the implementation of state-of-the-art central risk management infrastructure for managing a diversified set of Enterprise-wide Risk Management Analysis and Reporting Systems featuring leading capital adequacy methodologies.
Michael A. Smith, Chief Software Architect, Strategic Analytics Inc., has spent six years building and deploying software solutions for analysing and forecasting retail loan portfolios. At Strategic Analytics, Mr Smith led the design and development of the LookAhead software product which packages Dual-time Dynamics analysis and forecasting methodology into a desktop software solution. Mr Smith has a lead role working with client institutions that are at the forefront of retail lending worldwide. He has led numerous courses in portfolio analysis and served as an instructor in each of the RMA Retail Lending Portfolio Analytics courses.
Mr Smith's extensive experience modelling biological and physical systems in both academic and corporate settings includes three years at Arizona State University developing models of the human auditory system. He also spent several years consulting to Motorola on the development of distributed intelligence systems for command and control of military operations, contributing to Motorola's core development effort to create a self-forming, distributed software architecture that is both platform and protocol independent. This group received the highest (level 5) certification of software process from the Software Engineering Institute.
Later, as a Scientist in the Investment Analytics Group at CASA, the Centre for Adaptive Systems Applications, Mr Smith defined the architecture and implementation of the modelling engine in CASA's Advanced Crisis Simulator (ACS). The ACS is a Java-based consumer bank 'flight simulator' used by a major international bank to train senior managers in the management of economies crises in emerging market economies. Mr Smith interfaced with senior managers at leading financial institutions to ensure that the ACS models accurately refected management?s experiences in crisis management. The ACS was deployed for training in Asia and South America.
5 & 6 December 2005 - Retail Lending Portfolio Analytics
General Information
Time: 8:30am to 5pm
Venue: The Grace Hotel, Balinga Room, 1st Floor, 77 York Street, Sydney.
Registration Fees
RMA Members: A$1,254 (including GST)
Non-Members: A$1,353 (including GST)
Course Overview
Retail lending has changed dramatically in the last couple decades, moving from a largely intuitive process to an increasingly automated one. But managing a retail loan portfolio successfully depends on properly developing, deploying, and integrating a wide range of models. These modelling activities-everything from account-level scores to portfolio forecasts and economic capital-need to be coordinated across a range of loan products, and across marketing, credit, collections, operations, and finance.
This course discusses the key drivers of portfolio performance and portfolio modelling approaches that range from classical to leading edge. Special emphasis will be given to integrating all of these modelling efforts so that results can be co-ordinated across business functions and loan products. In addition, we will review the Basel II requirements for consumer finance, including capital and model quality.
Who Will Benefit?
This course is for modellers, analysts and credit professionals who are involved in managing large or rapidly growing retail lending portfolios. Although it covers the development and use of sophisticated analytical techniques, the course is intended for portfolio managers, financial analysts, credit policy and marketing professionals, and statistical analysts. Anyone with decision-making responsibility in this field will benefit.
You will learn to:
- Quantify the drivers of portfolio performance, including loan maturation, intrinsic credit risk, seasonality, macroeconomic impacts, and management actions.
- Use best-practice techniques to forecast revenue and losses.
- Incorporate marketing and macroeconomic scenarios into forecasts.
- Develop stress testing models for portfolio management and Basel II.
- Understand the connection between stress testing and economic capital.
- Expand your view of modelling's role in the organisation to encompass the enterprise and not just one business unit or product.
- Create consistent modelling and forecasting processes across loan types so that more time is spent making good decisions and less on arguing over competing methodologies or hidden assumptions.
- Integrate modelling and forecasting processes across business functions so that marketing, credit, and finance are working from the same numbers.
- Understand the role of Basel II in portfolio analysis.
Prerequisites
Participants should be comfortable with the basics of retail lending in at least one area. They should have some familiarity with building models in banking.
Instructors
Dr. Joseph L. Breeden, President and Chief Operating Officer of Strategic Analytics Inc., has spent the last eight years designing and deploying forecasting systems for retail loan portfolios. At Strategic Analytics, which he co-founded in 1999, Dr Breeden leads the design of advanced analytic solutions including the invention of Dual-time Dynamics and takes a leading role working with client institutions. Strategic Analytics has successfully grown from a start-up company to an industry provider of software modelling tools and services analysing over $600 billion in credit cards, auto, home equity, mortgage and other consumer credit portfolios.
Prior to founding Strategic Analytics in 1999, Dr Breeden was a Senior Scientist in the Investment Analytics Group at the Centre for Adaptive Systems Applications (CASA) in Los Alamos, NM. While at CASA, Dr. Breeden worked primarily as a consultant for Citicorp designing portfolio forecasting systems in emerging markets.
Through his work for Citicorp, Dr. Breeden has had several unique experiences with emerging-market crises. Assignments in Thailand, Malaysia, and Indonesia before, during, and after the Asian Economic Crisis provided Dr. Breeden with a rare perspective on crisis management and the analytics needs of executives for strategic decision-making.
Michael A. Smith, Chief Software Architect, Strategic Analytics Inc. Please refer Retail Lending Credit Scoring course detail for Mr. Smith's biography.
