COMMENTS FROM A CREDIT SCORING EXPERT: David Kresge, Emerson Global Consulting, LLC, reflects on the recent BIIA survey “Trends in Credit Risk Management and Implications on Credit Information” and found the results quite intriguing. Kresge thought that the response to question 6 was particularly revealing. From the responses of the credit managers contacted in the survey, it seems clear that the credit crisis has driven home the point that there is a real need for better information systems to guide credit risk management decisions. To be effective, such systems are going to have to be based on more reliable and more up-to-date information. And, the systems have to incorporate predictive scores or other analytical techniques to process the information and provide credit managers with tools to support appropriate, timely actions. These points were made repeatedly in the responses to the survey.
The collapse of the credit markets has certainly inflicted enormous losses on the global economy. It would be nice if something positive could come out of it by focusing attention on the need for better credit information systems in countries throughout the world. David Kresge hopes that BIIA will be able to make progress in this area.
To read the entire comment click on the link: Reflection
The results of the survey can be viewed at: BIIA Credit Management Survey