SAS for Finance

Data

Last but not least, in order to do all of the aforementioned activities, we need data. When dealing with credit risk management, the modeler may have to deal with various data systems. An understanding of these systems is required to build accurate models, explain the modeling process to the internal review team and the regulator, and also, to ensure that the model output can be implemented in one or multiple data systems. There may be one system to book the lending, another to manage the collaterals, and a third system to monitor the recoveries and write-offs. External bureau data may also be required, especially in the case of application scorecards. This adds to the complexity of ensuring that data quality is met and that the modeler ...