{"id":1806,"date":"2020-03-31T22:29:46","date_gmt":"2020-03-31T22:29:46","guid":{"rendered":"http:\/\/beeeye.com\/?p=1806"},"modified":"2021-06-14T12:11:37","modified_gmt":"2021-06-14T12:11:37","slug":"covid19-credit-risk-modeling","status":"publish","type":"post","link":"http:\/\/beeeye.com\/covid19-credit-risk-modeling\/","title":{"rendered":"Post-Covid19 credit risk modeling and thirsty crows: Preparing for the day after"},"content":{"rendered":"<div class=\"fusion-fullwidth fullwidth-box fusion-builder-row-1 fusion-flex-container nonhundred-percent-fullwidth non-hundred-percent-height-scrolling\" style=\"background-color: rgba(255,255,255,0);background-position: center center;background-repeat: no-repeat;border-width: 0px 0px 0px 0px;border-color:#eae9e9;border-style:solid;\" ><div class=\"fusion-builder-row fusion-row fusion-flex-align-items-flex-start\" style=\"max-width:105%;margin-left: calc(-5% \/ 2 );margin-right: calc(-5% \/ 2 );\"><div class=\"fusion-layout-column fusion_builder_column fusion-builder-column-0 fusion_builder_column_1_1 1_1 fusion-flex-column\"><div class=\"fusion-column-wrapper fusion-flex-justify-content-flex-start fusion-content-layout-column\" style=\"background-position:left top;background-repeat:no-repeat;-webkit-background-size:cover;-moz-background-size:cover;-o-background-size:cover;background-size:cover;padding: 0px 0px 0px 0px;\"><div class=\"fusion-text fusion-text-1\"><\/p>\n<p>An old folktale tells the story of a <a href=\"https:\/\/www.moralstories.org\/the-thirsty-crow\/\">thirsty crow<\/a>, who found water at the bottom of a bucket, and couldn\u2019t reach it with the tip of his beak. He added pebbles to the bucket until the water level rose enough that he could drink. Necessity has always been the mother of invention.<br>The world will change. It already has. It will leave everyone bruised in some way, and everyone will have to deal with new challenges, or with old ones with a twist. Doing post-Covid19 credit risk things the \u201cpre-Corona\u201d way just won\u2019t cut it. If you\u2019re a credit risk professional, you\u2019ll see an upsurge in demand for credit, and you\u2019ll need to ensure you\u2019re able to assess risk in a way that matches the new world conditions. <\/p>\n<p>Why your \u201cbeak\u201d alone won\u2019t cut it: <\/p>\n<ul>\n<li><strong>You will have to make tough decisions, like never before. <\/strong>Well, maybe not \u201cnever\u201d, but probably not since the <a href=\"https:\/\/www.thebalance.com\/the-great-recession-of-2008-explanation-with-dates-4056832\">2008 crisis<\/a>. With many more credit seekers, you\u2019ll need to be extra-certain that you are taking exactly the risk you can afford. But your model can\u2019t give you the clarity you need. That\u2019s because&#8230; <\/li>\n<li><strong>Your model doesn\u2019t know the post-Corona world yet. <\/strong>If you\u2019re assessing credit for a business in an industry that was a booming one until two months ago, and is now struggling, your model just doesn\u2019t take it into account. Why not? See my next point.<\/li>\n<li><strong>Most credit risk departments don\u2019t update their models often enough<\/strong>. For most credit risk departments, updating the model is a <a href=\"http:\/\/beeeye.com\/banks-without-ai-based-credit-risk-modeling-struggle-to-keep-pace\/\">real hassle<\/a>. It requires a hard-to-track paper trail of the last person who updated it, The model book isn\u2019t updated automatically and the approval process for the next version can take months. <\/li>\n<\/ul>\n<p>So where does that leave you? With a need for invention. Or even better &#8211; <strong>innovation<\/strong>. Yes, this is the time to ensure you have the best tools to make the right calls in the post-Covid19 credit risk reality, that will be agile enough to adapt to the rapidly changing reality. And while your model already has a smart AI-based engine, if that engine isn\u2019t updated often enough, it won\u2019t be enough. <\/p>\n<p>Here\u2019s what the \u201cpebbles\u201d you bring to the bucket need to have to help you quench your thirst for accurate credit risk assessments:<\/p>\n<ul>\n<li><strong>An auto-fill for your model book <\/strong>to make the update as easy and fast as possible.<\/li>\n<li><strong>A user paper trail at the click of a button <\/strong>to easily find the last person who updated the model<\/li>\n<li><strong>A version update process that meets regulatory requirements<\/strong> and takes a fraction of the time to get approved vs. your current model<\/li>\n<\/ul>\n<p>The <a href=\"http:\/\/beeeye.com\/demo-videos-of-the-eyeonrisk-platform\/\">EyeOnRisk Platform<\/a> enables all of this and more. Because we know that the crow that doesn\u2019t get inventive, stays thirsty. And in a post-pandemic world, this is something you can\u2019t afford.<\/p>\n<\/div><\/div><style type=\"text\/css\">.fusion-body .fusion-builder-column-0{width:100% !important;margin-top : 0px;margin-bottom : 0px;}.fusion-builder-column-0 > .fusion-column-wrapper {padding-top : 0px !important;padding-right : 0px !important;margin-right : 2.375%;padding-bottom : 0px !important;padding-left : 0px !important;margin-left : 2.375%;}@media only screen and (max-width:1024px) {.fusion-body .fusion-builder-column-0{width:100% !important;}.fusion-builder-column-0 > .fusion-column-wrapper {margin-right : 2.375%;margin-left : 2.375%;}}@media only screen and (max-width:640px) {.fusion-body .fusion-builder-column-0{width:100% !important;}.fusion-builder-column-0 > .fusion-column-wrapper {margin-right : 2.375%;margin-left : 2.375%;}}<\/style><\/div><\/div><style type=\"text\/css\">.fusion-body .fusion-flex-container.fusion-builder-row-1{ padding-top : 0px;margin-top : 0px;padding-right : 30px;padding-bottom : 0px;margin-bottom : 0px;padding-left : 30px;}<\/style><\/div>","protected":false},"excerpt":{"rendered":"","protected":false},"author":3,"featured_media":2199,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mi_skip_tracking":false,"footnotes":""},"categories":[12],"tags":[32,24,33,19],"_links":{"self":[{"href":"http:\/\/beeeye.com\/wp-json\/wp\/v2\/posts\/1806"}],"collection":[{"href":"http:\/\/beeeye.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/beeeye.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/beeeye.com\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"http:\/\/beeeye.com\/wp-json\/wp\/v2\/comments?post=1806"}],"version-history":[{"count":1,"href":"http:\/\/beeeye.com\/wp-json\/wp\/v2\/posts\/1806\/revisions"}],"predecessor-version":[{"id":3402,"href":"http:\/\/beeeye.com\/wp-json\/wp\/v2\/posts\/1806\/revisions\/3402"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/beeeye.com\/wp-json\/"}],"wp:attachment":[{"href":"http:\/\/beeeye.com\/wp-json\/wp\/v2\/media?parent=1806"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/beeeye.com\/wp-json\/wp\/v2\/categories?post=1806"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/beeeye.com\/wp-json\/wp\/v2\/tags?post=1806"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}