There's a dichotomy operating in the world of analytic models these days. On one hand, more pressure exists to create, review and redevelop models to drive stronger business outcomes, propel customer engagement and manage risk. On the flip side, the need for regulatory transparency means more time spent auditing vs. focusing on improving the models themselves. Clearly, there has to be a better way to efficiently drive all these objectives without favoring any particular one.
My colleague Richard Schiffman has kicked off a multi-part blog series on FICO.com on Model Management Best Practices that will help illuminate how banks, insurers and other organizations are automating model management processes and freeing resources to focus where they can add the most incremental value while helping ensure compliance. In his first post, Richard talks about the need to review credit policies regularly as a mechanism to document risk appetite.
Check out his blog at FICO.com, and share your thoughts with us!