Managing credit risk settings

After setting up your credit risk groups, the Profitability Data > Credit Risk page allows you to adjust the settings for FICO and custom risk groups.

Managing  risk groups

From the Credit Risk > FICO risk groups or Credit Risk > Custom risk groups pages, you can change the effective year and month, as well as save updated data as a new historical baseline, as needed.

You can also edit existing group names, update capital assignments, delete unused risk groups, add additional risk groups, and update your risk scale.

NOTE: Screen shots in this section reflect the FICO risk groups; however, the screens and procedures for editing custom risk groups are nearly identical.

Changing the effective year and month

During setup, you were prompted to define an historical baseline for each risk group. Once established, you can choose to change the effective year and month, or to use updated

To change the effective year and month:

  1. From the Command Center, click Profitability Data > Credit Risk.

  2. Click the FICO risk group sub-tab or one of the custom risk group sub-tabs.

  3. Select Effective year and month.

  4. Click the calendar icon to select a new year and month, or type the year and month in the field.

  5. Update the necessary values for each risk group.

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  6. Click Save when complete.

Saving data as an historical baseline

You can also choose to save new data as an historical baseline.

To save data as an historical baseline:

  1. From the Command Center, click Profitability Data > Credit Risk.

  2. Click the FICO risk group sub-tab or one of the custom risk groups.

  3. Select Save as historical baseline.

  4. Update the necessary values for each risk group.

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  5. Click Save when complete.

Editing FICO risk groups

To edit the FICO risk group:

  1. From the Command Center, click Profitability Data > Credit Risk.

  2. Click the FICO risk group sub-tab or one of the custom risk groups.

  3. In the list of risk groups, click the name of the group you want to edit.

  4. In the Edit dialog, enter a new name for the group.

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  5. [Optional] Select or clear Use in RPPS.

  6. Click Edit to save your changes.

  7. Click OK at the prompt.

Editing custom risk group names

You can change the name of each custom group, which is displayed as a sub-tab on the Credit Risk page.

NOTE: You cannot change the name of the FICO risk groups tab.

  1. From the Command Center, click Profitability Data > Credit Risk.

  2. Click the custom group sub-tab whose name you want to change.

  3. Click the Edit icon next to the group name.

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  4. Update the name and click Edit.

Updating existing capital assignments

The FICO and custom risk group sub-tabs offer editable tables that allow you to edit the capital assignments for each risk group.

To update capital assignments for a risk group:

  1. From the Command Center, click Profitability Data > Credit Risk.

  2. Click the FICO risk group sub-tab or one of the custom risk groups.

  3. For each risk group, enter new percentages for each column of the risk scale, as needed.

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  4. Click Save when complete.

Adding new risk groups

You can add additional risk groups to your FICO or custom groups at any time.

To add a risk group:

  1. From the Command Center, click Profitability Data > Credit Risk.

  2. Click the FICO risk group sub-tab or one of the custom risk groups.

  3. Click Add Risk Groups.

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  4. In the Add risk group dialog, enter a name for the group.

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  5. Select Use in RPPS, if desired.

  6. Add additional groups, as needed.

    NOTE: A new, blank row appears each time you click in the last row.

  7. Click Add.

Manage risk scale

You can update the description and values for FICO and custom risk groups.

NOTE: If you update your FICO scale by adding new rows, you may need to update the values for each band.

To edit the FICO scale:

  1. From the Command Center, click Profitability Data > Credit Risk.

  2. Click the FICO risk group sub-tab.

  3. Click Manage FICO Scale.

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  4. In the Manage FICO Scale dialog, do one or more of the following:

    • Update the description for existing bands.

    • Edit the existing Max value for a band. The Min value for the following band will update automatically.

    • Click the + icon to add a new row. Add a Max value for each new row, and adjust subsequent rows accordingly.

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  5. Click Save.

To edit the risk scale for a custom group:

  1. From the Command Center, click Profitability Data > Credit Risk.

  2. Click the FICO risk group sub-tab.

  3. Click Manage Risk Scale.

  4. In the Manage Scale dialog, do one or more of the following:

    • Update the description for each risk level

    • Edit the value for each risk level

    • Click the + icon to add a new row. Add a new value for the row, and adjust subsequent rows accordingly.

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  5. Click Save.