MLDS 490-21: Predictive Models for Credit Risk Management

This course is not currently offered.


This course introduces credit risk management for financial services industry. It focuses on how predictive models are developed and used for credit risk management throughout different stages of the credit life cycle (acquisition, authorization, accounts management, and recoveries). The objective is to prepare the students for future employment in financial services industry with the business knowledge and hands-on model development experience using simulated industry data sets.

There will be several hands-on model development projects. Students will be given different business issues to solve, coupled with the data sets. The model building activities include selection of appropriate econometric models, variable reduction techniques, multi-collinearity diagnosis, bi-var analysis, variable treatment, etc.