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Parametric methods for precision calibration of scoring models
P. 348–355.
Mikhail Pomazanov, Berezhnoy A.
Once a scoring model has been developed for use in assessing a borrower’s credit risk, under the internal ratings-based (IRB) approach, it must be calibrated to a real-world measure of default frequency. The conservativeness of the calibration is tightly controlled, if it is not violated in the allowed number of digits of the rating scale, only then the model is authorized for use. If violated, the calibration probability of default must be raised, placing additional strain on the bank’s capital and reserves. In the presented paper, two new methods to improve the calibration accuracy are proposed. The methods have been tested in practice and provide significantly positive results in certain segments of the loan portfolio.
Boitcov M., Adamovich K., Getman A. et al., Психологическая наука и образование 2026 Т. 31 № 2 С. 188–203
Goal setting is widely used in online education and is considered a factor contributing to student motivation and academic performance. However, existing research often overlooks how accurately students formulate their goals and
how this accuracy relates to prior learning experience. This study investigates the relationship between goal-setting accuracy and academic performance, as well as the factors ...
Added: May 5, 2026
Mironkina Y., Тимофеев Д. И., В кн.: Математическое и компьютерное моделирование в экономике, страховании и управлении рисками: сборник статей. Выпуск 10. Материалы XIV Научно-практической конференции. Саратов, 20–22 ноября 2025 г.Вып. 10.: Саратов: Саратовский университет, 2025. С. 51–58.
In the field of auto insurance, one of the most pressing challenges is the problem of financial
losses arising from the misclassification of clients in terms of the potential unprofitability of their
insurance contracts. This study is devoted to the development of a scoring system based on machine
learning and classical statistical methods, using portfolio data from a ...
Added: March 31, 2026
Ozerov K., Кутенко С. В., Деньги и кредит 2024 Т. 83 № 4 С. 98–118
Under limited data, the classical cohort method for the creation of migration matrices does not fully reflect the dynamics of the credit quality of the objects within the sample. This problem is exacerbated for objects of lower credit quality less represented in the sample. This paper investigates a continuous time approach to the creation of ...
Added: December 20, 2025
Bernhardt B. D., Marciano C., Guarracino M. R., Operations Research Forum 2025 Vol. 6 Article 47
E-commerce is a key sector in the Italian economy, with online companies becoming some of the largest and most profitable businesses. However, this growth comes with increased risk exposure. This study aims to investigate the relationship between alternative data (contextual factors, Text-Driven Data Enrichment) and the probability of default for Italian e-commerce companies. To date, ...
Added: September 6, 2025
Ali S., Ryzhikov A., Derkach D. et al., , in: Computational Science and Its Applications – ICCSA 2025: 25th International Conference, Istanbul, Turkey, June 30 – July 3, 2025, Proceedings, Part IIIVol. 15650: Lecture Notes in Computer Science (LNCS).: Champaign: Springer, 2025. Ch. 24 P. 346–355.
The long-term stability of calorimeters is crucial in high-energy physics experiments, where precise energy measurements are essential for accurate particle reconstruction. This study introduces a Wasserstein GAN (WGAN)-based machine learning approach for calibrating calorimeter responses affected by aging and other systematic shifts. Our methodology is applied to realistic, high-granularity calorimeter data that more accurately mimic ...
Added: June 27, 2025
Sirotin V., Arkhipova M., Кириллова О. А., Финансы и бизнес 2025 Т. 21 № 4 С. 3–13
The article presents a model of the evolution of the latent regional structure of income inequality based on a two-component model of a mixture of probability distributions, which makes it possible to identify trends in changes in this area. The process of stratification of the regional structure of income inequality is analyzed, accompanied by an ...
Added: April 17, 2025
Ali S., Ryzhikov A., Derkach D. et al., Moscow University Physics Bulletin 2024 Vol. 79 No. Suppl. 2 P. S591–S597
In the realm of high-energy physics, the longevity of calorimeters is paramount. Our research introduces a deep learning strategy to refine the calibration process of calorimeters used in particle physics experiments. We develop a Wasserstein GAN inspired methodology that adeptly calibrates the misalignment in calorimeter data due to aging or other factors. Leveraging the Wasserstein ...
Added: November 7, 2024
Penikas H. I., / Банк России. Серия доклады Банка России "Серия докладов об экономических исследованиях". 2024.
In 2016, the Bank of Russia developed two ordinances to set forth a procedure using a limited sample of loans to conclude whether the level of loss provisions in the portfolio of uniform loans is sufficient or not and whether the bank’s capital is adequate.
The existing procedure of reserve sufficiency evaluation previews as a rule considering only a part of the loan portfolio and transfer (extrapolation) of the provision thus assessed for the overall portfolio. Moreover, the acting approach to define the minimum loan sample size assumes the absence of the default correlation.
Author’s contribution ...
Added: June 1, 2024
Mikhail Pomazanov, , in: Procedia Computer Science: Tenth International Conference on Information Technology and Quantitative Management (ITQM 2023)Vol. 221.: ScienceDirect, 2023. P. 237–244.
When developing scoring models, Weight of Evidence (WOE) transformation is actively used, which is in demand to improve the discriminating power of the factors included in the model. For WOE transformation, various binning methods are used, the dimension of which is limited by the available statistics. As an alternative, the method of continuous transformation of ...
Added: September 27, 2023
Pomazanov M. V., Управление финансовыми рисками 2023 Т. 73 № 1 С. 18–29
The article examines the stability of indicators of rating models’ discriminatory power (in particular, Gini index) in the context of usefulness of Internal Ratings-Based Approach for credit risk assessment. The author considers the drop in discriminatory power, when it makes sense to abandon this approach, builds a macro model for predicting the Default Rate, and ...
Added: March 20, 2023
M. V. Pomazanov, , in: 9th International Conference on Information Technology and Quantitative ManagementIssue 214.: Elsevier, 2022. P. 565–572.
The paper proposes new second-order accuracy metrics for scoring/rating models, which show the target preference of the model - it is better to diagnose "good" objects or better to diagnose "bad" ones for a constant generally accepted predictive power determined by the first-order metric - the Gini index. Two metrics proposed, they have both an ...
Added: December 9, 2022
Pomazanov M. V., , in: The 8th International Conference on Information Technology and Quantitative Management (ITQM 2020 & 2021): Developing Global Digital Economy after COVID-19Vol. 199: The 8th International Conference on Information Technology and Quantitative Management (ITQM 2020 & 2021): Developing Global Digital Economy after COVID-19.: Manchester: Elsevier, 2022. P. 798–805.
The article considers the issue of quantifying the quality of discrimination (approval) in the retail portfolio segments based on current statistical data on the level of refuse of customers who applied to the bank, the current level of defaults and market data (credit history bureaus). The analysis of the economic efficiency of the practiced level ...
Added: November 18, 2022
Pomazanov M. V., , in: Risk Management, Sustainability and Leadership.: L.: IntechOpen, 2022. Ch. 6.
This chapter discusses the issue of assessing the quality of risk management for a wide segment of retail lending (from consumer loans to loans for self-employed persons and SMEs). The quality of risk management is assessed using the generally recognized approach of the ROC analysis methodology and assessment of the optimal level of discrimination, taking ...
Added: November 16, 2022
Bossy M., Jean-François Jabir, Rodríguez K. M., Journal of Computational Physics 2022 Vol. 464 Article 110929
We present the construction of an original stochastic model for the instantaneous turbulent kinetic energy at a given point of a flow, and we validate estimator methods on this model with observational data examples. Motivated by the need for wind energy industry of acquiring relevant statistical information of air motion at a local place, we ...
Added: November 8, 2022
Pomazanov M. V., / Series arXiv:2204.07989v1 "Risk Management (q-fin.RM)". 2022.
The paper proposes new second-order accuracy metrics for scoring or rating models, which show the target preference of the model, it is better to diagnose good objects or better to diagnose bad ones for a constant generally accepted predictive power determined by the first order metric that is known as the Gini index. There are ...
Added: October 26, 2022