Reverse Reengineering of Risk

Reverse Reengineering of Risk

The writedowns and bailouts are legendary, but some industry experts argue the credit crisis didn’t have to happen. Simply put, an overdependence on technology and absence of judgment fanned the flames that have burned investors and taxpayers alike. It began with traditional credit scoring and analytics that made some pretty silly assumptions, like incomes don’t matter much and people who prefer to pay in cash are riskier bets. After billions of writedowns, isn’t it time the industry learn to assess risk properly?

Daily Banking News

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