Infrastructure Design for Credit Risk Modeling

Common Problems Leading Institutions Face when Building Scorecards One version of the truth. Two people asking the same question, or repeating the same exercise should get the same answer. One way to achieve this is by sharing and reusing data sources, data extraction logic, conditions such as filters and segmentation logic, models, parameters and variables, including logic for derived ones. Transparency and audit. Anyone who needs to see details on each phase of the development process should be able to do so easily. For example, how data is transformed to create aggregated and derived variables, the parameters chosen for model fitting, how variables entered the model, validation details, and other parameters should preferably be stored in graphical user interface (GUI) format for review. Retention of corporate intellectual property (IP)/knowledge. Practices such as writing unique code for each project and keeping it on individual PCs makes it harder to retain IP when key staff leave.