Aug
05
2011

Are you using a “dull” risk score?

I have especially fond memories at this time of year of working with my grandfather as a painting apprentice during my summer vacations growing up. One of my jobs as an apprentice was using a putty knife to scrape the cracked old paint off of window sills and then sanding and priming them before applying a fresh layer of paint. Over the years I found a sharp putty knife made my work significantly quicker and easier. Although a dull putty knife would technically “work”, it made the job a real chore.

Similarly, while some generic risk scores might work pretty well, they may not be the best tool for the job. Ideally, risk scores should provide you with the most targeted insights to help you manage risk on accounts like yours. For example, if your portfolio is made up of commercial cards, it will be more important that a score identifies the accounts that are likely to go delinquent on card products than one that predicts that a business will go delinquent on a certain percentage of its total outstanding balance. Like using a sharp putty knife, product-specific risk scores can make your job easier and yield much better results.

To learn more about product-specific commercial risk scores, click here.


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