Predictive Scoring / Models : Business Definition

Predictive scoring is the process of using historical information to predict future outcomes. It involves identifying the risks inherent in a future decision by examining the relationship between historical information and the future event. In essence, it is an objective and statistically derived counterpart to subjective, intuitive assessments. The objective of a score is to report the risk involved in a given decision. Predictive Scoring allows you to rank order accounts based on the probability of an event occurring. Predictive Scoring represents a statistical probability, not a guarantee. Examples include the Risk of Late Payment Indicator in the Credit eValuator Plus Report and the Commercial Credit and Financial Stress Scores in the Business Information and Comprehensive Insight Plus Reports.