Risk
Diving Deeper into Risk: Exploring Updates, Analysis, and Practical Insights on Our Blog
How to Reduce Financial Risk with the Right Data
When it comes to mitigating financial risks, organizations require information from outside of their four walls to make accurate predictions. Internal data provides insights based on historical information from within the organization. It does not factor in any important external factors. Risk officers and analysts across financial services companies and fintechs realize that risk modeling […]
Banking, Risk Management, and AI
If you missed the fascinating “Banking, Risk Management, and AI” panel at the Ai4 virtual conference, read on for a quick summary of what was discussed. Understanding and managing risk is crucial for banks and financial institutions. As the financial services industry becomes more data driven, artificial intelligence is playing a powerful role in the […]
Should You Use ML To Predict Small Business Default Risk?
Small businesses looking for loans today have more choices than ever. Online providers are lowering barriers to entry, making it easier and faster to apply for credit. The trouble is, this also means more credit for the risky borrowers. A risk that is, of course, passed on to lenders. But what’s a lender to do? […]
To Really Know Your Customer, You Need A Risk Modeling Platform Fueled by External Data
By now, everyone and their dog has seen the true-crime thriller Dirty John on Netflix, but just in case you’re the exception, here’s a quick summary: smart, successful woman meets a charming man with a suspiciously empty past. Red flags start popping up all over the place, but each time, the heroine gives her charming […]
Should You Be Using Traditional Credit Scores?
Credit scores have an enormous impact on people’s lives and opportunities. This makes it all the more worrying that the precise systems and methods used to calculate them are closely guarded secrets, known to just a handful of influential agencies. More concerning is that what we do know is that traditional credit scoring often gets […]
What Happens When The Definition of Risk Changes?
Risk and probability are based on data. You establish the statistical risk of losing an investment based on other investments that didn’t work out. You assess whether someone is likely to repay a loan based on their credit score and other reliability indicators. But what happens when you want to calculate risk for an incident […]
How Dynamic Risk Modeling Gives Your Detection a Boost
It’s not an overstatement to say that detecting risk is a tough task, even with the best technology available. The changing face of fraud, supplier risks, cyber crimes, and a host of other factors risk leaders need to track means that the approach to detecting them must be equally multi-faceted. However, we seem to be […]
Could Walter White and Marty Byrde Fool The Best Risk Models?
Crime doesn’t pay — any TV cop will tell you that much. But, what about their counterparts — those slick TV criminals that, season after season, manage to elude the law with clever schemes, quicker wits, and just plain dumb luck? What about Walter White, the science teacher turned meth-making mastermind in Breaking Bad, who […]
Fraud Has a Bigger Impact in Crises – Can You Afford to Sleep on It?
In normal times, fraud is a problem — albeit one that has steadily grown over the past few years. It’s for good reason, too. Fraud is big business, no matter where in the world you operate. The FBI estimates that the cost of insurance fraud (not counting health insurance) is roughly $40 billion a year […]
COVID-19 Broke Your Risk Models. This is How External Data Can Fix Them.
The previous decade has been one of impressive growth and massive profits for financial services providers. As the global economy bounced back from the recession, new regulations, improved technology, and a friendlier landscape for lenders meant that financing and loans were easier than ever to come by. Over ten years later, it took only three […]
It’s Official: Online Lenders Can No Longer Afford to Ignore Alternative Data
You don’t know what you don’t know, as the old saying goes. But in the age of Big Data, you simply can’t afford to shrug off what Donald Rumsfeld famously called “unknown unknowns”. In a high-risk, high-reward business like online lending, incomplete information quickly puts you at a disadvantage – and your business in real […]