FICO Economic Impact Service for Basel Analytics (UK)

The FICO^® Economic Impact Service addresses today’s growing concern that risk prediction modelling should account for economic cyclical changes, a viewpoint reflected within Basel II modelling requirements. Economic Impact Service helps organisations comply with Basel’s Advanced Internal Ratings Based Approach in three ways: Calculating Long-Run Estimates of Probability of Default over an economic cycle; Stress Testing of models under suppositional economic conditions; Supporting Use Tests with economic impact analytics incorporated in data-driven strategy development, decision modelling and optimisation.