Michael Crouhy, et al., The Essentials of Risk Management, Chapter 9: Credit Scoring and Retail Credit Risk Management is a 30 minute instructional video analyzing the following concepts:
* Analyze the credit risks and other risks generated by retail banking.
* Explain the differences between retail credit risk and corporate credit risk.
* Discuss the “dark side” of retail credit risk and the measures that attempt to address the problem.
* Define and describe credit risk scoring model types, key variables, and applications.
* Discuss the key variables in a mortgage credit assessment and describe the use of cutoff scores, default rates and loss rates in a credit scoring model.
* Discuss the measurement and monitoring of a scorecard performance including the use of cumulative accuracy profile (CAP) and the accuracy ratio (AR) techniques.
* Describe the customer relationship cycle and discuss the trade-off between creditworthiness and profitability.
* Discuss the benefits of risk-based pricing of financial services.