How to calculate credit risk?
What Is Credit Risk? Credit risk is the probability of a financial loss resulting from a borrower's failure to repay a loan.
Essentially, credit risk refers to the risk that a lender may not receive the owed principal and interest, which results in an interruption of cash flows and increased costs for collection..
What are the benefits of VBA?
Automating processes
One of the most popular reasons to use VBA in Office applications is the ability to construct programs that automate repetitive processes.
Users can work productively and manage their time efficiently with this tool to perform a wide variety of tasks..
What does VBA stand for?
Excel VBA, short for Visual Basic for Applications, is a programming language that empowers users to automate tasks and create personalized solutions within Microsoft Excel..
What is meant by credit risk?
Credit risk modeling is the process of using statistical techniques and machine learning to assess this risk.
The models use past data and various other factors to predict the probability of default and inform credit decisions.
This is part of a series of articles about machine learning for business..
What is VBA used for in finance?
You can use VBA in Excel to create and maintain complex trading, pricing, and risk-management models, forecast sales and earnings, and to generate financial ratios.
Perform scenario-analysis.
With Visual Basic for Applications, you can create various portfolio-management and investment scenarios..
- The target variable is generally an 'output' of the model.
It contains the information on the available data that we want to predict in future data.
In credit scoring it is commonly called good/bad definition.
