Risk strategy important steps of tuning method

How to achieve the balance of maximum profit through the adjustment of quota strategy.For example, when a customer is given a quota of 3,000, I believe everyone is also thinking about whether the relevant quota can be adjusted to 4,000 or 5,000, or even reduced to 2,000, then the company's profit is maximized.
I believe this problem is also a problem that many students who do risk pre-loan strategies often face.How to adjust the quota and find a balance point to maximize profits.
In last week's course, we introduced the following routine operation process, this time we introduce the most commonly used three-step method:

The first step: formulate undifferentiated credit lines
In the beginning, there is an undifferentiated amount. The so-called undifferentiated credit means that the same customer has the same price.
There are several points to note here. When the risk decision set is unstable, the quota adjustment must not be carried out.For example, the pass rate indicator in the decision-making set should not be adjusted when it is still rising.Because there are multiple different variables to determine the final goal, and there are related volatility data in the follow-up, we can't figure out which variable is causing it.

Step 2: Analysis of credit limit after model segmentation
This is the stratification of customer groups. Here we need to use tools such as scoring models to divide customer groups with different risks and then formulate differentiated strategies., so that the effects of the strategies formulated can be compared.

Step 3: Interval rationality analysis (secondary optimization of strategy) and iterative quota strategy
Interval rationality analysis, adjust a reasonable value for each interval.It needs to be optimized in combination with post-loan indicators, and then iterate the quota strategy.When you feel that the effect of the quota strategy is not good, you will still return to the undifferentiated credit line (that is, if you find that the adjustment of the quota is not very profitable and cannot continue, you can still redo an undifferentiated credit line.).
In the following, we will give you an in-depth analysis of the above three-step method of quota adjustment based on a case in an actual scenario.

Case practice:
Assuming that there is a certain cash loan product, after the risk decision set document has been online for a period of time, we have adjusted the relevant quota strategy. The overall practical details are as follows:
①: Assuming that the bad share of undifferentiated credit with the same amount is 12%, and the basic amount is 2,000 yuan, in the stratification of customer groups, the customer groups are divided into five levels according to the relevant risk levels, namely A/B/C/D/E.
②: Then based on the basic quota of 2,000 yuan, we will increase the overall quota by 25% to 2,500 yuan, and the flat rate (interest) will be positioned at 12%
③: After adjusting the relevant AB test, we compareThe data of the bad debt rate between different grades, so far the following data details are obtained:
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As mentioned above, the increase of the quota will always be accompanied by the increase of bad debts, but the increase of bad debts does not mean that it is not profitable. Based on this data, we have the following test data on the profitability of different groups.(The following are the five test related data of A, B, C, D, and E, respectively):
Group A:
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Group B:
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Group C:
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Group D:
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Group E:
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After adjustment, it can be found from the above data that the AB range is profitable after the adjustment, that is, the A range can continue to increase the amount by more than 500, and the B range can continue to increase the amount by 500.However, CDE does not recommend continuing to increase the amount, and the CD range needs to reduce the amount of increase, especially the E range does not support the increase.After the above adjustments, the credit extension strategy is optimized for the second time.
The above is the three-step analysis method in the risk quota strategy tuning that we shared with you this time. In addition, in the quota strategy, we focus on:
①Can the quota model and the decision model be shared?That is, when I need to adjust both the quota and the decision set at the same time, what should I do?
②When our quota is not only limited to the inside of risk control, that is, in the case of cooperating with operations to achieve profits.For example, in order to open the market, the profit needs to be lowered. How to achieve this?
③How to increase the loan amount?How to increase the loan amount, such as from 200 million to 300 million.How to release risks in this process will be relatively better, and how to strictly control risks.
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~Original article