This book provides a systematic presentation of credit risk scorecard development and implementation. The text covers the theoretical foundations, the practical implementation and programming using SAS. The book topics include :
¥ Data acquisition - data preparation
¥ EDA, predictive measures and variable selection
¥ Optimal segmentation and binning
¥ Coarse classing and WOE transformations
¥ Development of logistic regression models
¥ Methods of model assessment and evaluation
¥ Scorecard creation and scaling
¥ Automatic generation of scoring code (SAS, SQL, C)
¥ Scorecard monitoring and reporting
¥ Reject inference
The SAS implementation contains over 50 ready-to-use SAS macros that can be implemented in the automation of the scorecard creation process.