Teaching note for product 9B17M177.

In September 2011, the chief risk officer of Credit Guarantee Corporation Malaysia Berhad (CGC) was mulling over a pressing problem. CGC was looking to expand its business in Malaysia from just giving guarantees to small and medium enterprises to also providing direct loans (direct-lending products). The change required a major overhaul in business strategy and an increase in eligibility criteria. Previously, most criteria were checked manually by .....more

This technical note covers statistical models such as scorecards, decision trees, random forest models, and neural networks for decision making. The Basel II framework and Rete algorithm are also expressed. This technical note is best used with product 9B17M177.