Risk Analysis

Scorecards are mathematical models which attempt to provide a quantitative estimate of the probability of default, making use of the information collected from multiple sources such as credit reports from the various credit bureaus, income verification, and employment history, to name a few. Scorecards are used to assign a score to an applicant to represent the applicant's creditworthiness. Financial institutions can configure scorecard evaluations of Application, Account, and Party records, and they can define the criteria that determine the scorecard to be called.

Each scorecard contains:

The criteria are defined on the Salesforce objects and parameters that you have defined. For example, Credit Report or Employment Information. Then, in the Credit Report scorecard, you can define scoring criteria around the number of open liabilities, credit score, and FICO score. You can further define the importance of each criterion for your credit decision by assigning a weight to each score. The total score of an applicant is the sum of the weighted score of all criteria.

Typically, you generate the scorecard for an application after gathering all personal and financial details of the borrowers and performing a credit pull and any collateral valuation. This gives you a broader range of options for defining the specific scorecard criteria.

If you have enabled Auto decisioning, the system uses the scorecard enabled for the application to automatically arrive at the score for the application.

Depending upon the total score, an application can be put in a particular credit band which can help assess the application.

You can define multiple default scorecards for a lending product using the Product Scorecard Junction. At the time of creating an application for this lending product, you can modify this default list and also add more scorecards. For this, the option for scorecard selection must be enabled by your administrator. Both these sets of scorecards are evaluated on the application.

For information on defining scorecards and evaluation criteria, see the section Setting up a Scorecard in the Q2 Origination Administration Guide.

Risk Analysis

Risk Analysis is the new scorecard evaluation results user interface. You can access the Risk Analysis page by navigating to Menu > Risk Analysis on the loan dashboard.

The Risk Analysis page enables you to:

• Initiate scorecard evaluations

• View the detailed results of scorecard evaluations

• View the aggregate results of scorecard evaluations

• View scorecard criteria

The Risk Analysis page displays the following:

• Total Score: Aggregate total score result value

• Deal Rating: Display the Credit Rating

• Generate Scorecard button: On selecting, initiates the Generate Scorecard API ( When you initiate the scorecard evaluation, Q2 Origination selects the scorecard to be used based on the execution criteria set up in the scorecard. For more information, see the section Defining Scorecard and Execution Criteria in the Q2 Origination Administration Guide.

The bulk of the page includes the previously stored scorecard results, including previously run scorecard results. Scorecard results are grouped by Scorecard; each group displays the Scorecard name at the top of the resulting group. The scorecard results within each group are displayed as a table and include the following information:

• Related Entity Name

• Field Name

• Actual Value

• Weighted Score

You can view the scorecard criteria associated with each scorecard result. You can select a specific result, and the associated scorecard criteria are displayed as a drawer.

Field	Description
Field Name	This field represents the name against which the rule was evaluated.
Actual Value	This field represents the actual value on the related entity for which the rule was evaluated
Matching Type	This field represents the operator value from the rule configuration (IN, Not IN, Between etc).
Value Type	This field represents the value type from the rule configuration. For example, Static or Field Comparison.
Field Comparison	This field represents the name of the field comparison.
Field Comparison Actual Value	This field represents the actual value of the field "Field Comparison" for the related entity.
Matching Value	This field represents the matching value from the rule configuration.
Minimum Value	This field represents the minimum value from the rule configuration (Applicable for Between operator only).
Maximum Value	This field represents the maximum value from the rule configuration (Applicable for Between operator only).

The Risk Analysis page also includes a pie/donut chart that displays the breakdown of the scorecard results.

If you have created the scorecard on the Account object, select the Run Risk Assessmentbutton on the Relationship Summary page. The applicable scorecards are generated and evaluated based on the execution criteria you have configured. Select the View Risk Assessmentbutton to see the results. The Total Risk Score is updated with the weighted results of the risk assessment. You can use this value to drive workflow, approvals, risk ratings, and other risk management functions.

Prerequisites

Before you proceed to generate the scorecard for the application, ensure that the following prerequisites are met:

• The scorecard is attached to the application.

• Values used by the scorecard criteria are available in the application.

  For example, if scorecard criteria are around the number of years of employment, then this information about the contact is recorded in the application.

Steps

To generate the scorecard for an application:

1. Log in to your Salesforce account.

2. Go to Applicationand select the application for which you want to generate the scorecard.

3. Confirm that all required scorecards are attached to the application, and if required, add these using the + icon in the scorecard region.

4. Go to Scorecard and select Generate Scorecard.

   The system runs the configured scorecards and generates the weighted application score for each scorecard. The application status at this time changes to Scorecard Generated or any other status that you may configure.