article thumbnail

AI-Based Credit Risk Tools Can Be Ruined By Noisy Data

The Horizons Tracker

One’s credit score is often hugely important, with it very difficult to secure substantial loans, such as mortgages, without a healthy credit rating. This can also mean, however, that it doesn’t take much to send your credit rating spiralling in the wrong direction.

article thumbnail

The Gig Economy Acts As A Stepping Stone Into Entrepreneurship

The Horizons Tracker

There was also a significant growth in entrepreneurship in areas where there was significant variance in the credit ratings of people. For instance, in areas with high levels of creditworthy borrowers, economic activity was higher, which in turn meant demand for the goods and services provided by entrepreneurs was also higher.

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

The Role Prediction Markets Play In Assessing Climate Risk

The Horizons Tracker

. “The institutional arrangements under which climate-risk information is currently provided mirrors the incentive problems and conflicts of interest that prevailed in the credit-rating industry prior to the 2007/8 financial crisis,” the researchers explain. ” Understanding climate risk.

Marketing 125
article thumbnail

Black Entrepreneurship In The United States

The Horizons Tracker

.” That way, if an entrepreneur is denied a loan, they would at least have the insight provided by the explanation as to why they have been denied, and can then work on boosting their credit rating. This transparency also helps to build trust that is often lacking in institutions.

article thumbnail

New Study Predicts Gloomy Economic Times Ahead For Americans

The Horizons Tracker

Walk away and default on the mortgage, with all of the credit rating implications. Retain the home and try and rent it out, which would impact any deposit they could put down on a home in their new region. “Our study highlights an important cost of home ownership,” the researchers explain.

Price 83
article thumbnail

Creating a New Approach to Engineering and Innovation at Hitachi Metals - SPONSOR CONTENT FROM HITACHI METALS, LTD.

Harvard Business Review

As the new general manager of the Global Research & Innovative Technology Center (GRIT) at Hitachi Metals, Kenichi Inoue is tasked with creating an updated framework for research and development in advanced materials, helping his organization make the shift to a new approach to engineering and innovation in a disrupted world.

article thumbnail

Private Equity Can Make Firms More Innovative

Harvard Business Review

And a recent working paper out of the Dusseldorf Institute for Competition Economics ( DICE ), a think tank of sorts, focuses on the latter by exploring whether leveraged buyouts (LBOs) make firms more innovative. PE investors don’t typically invest in firms known for innovation. ” There were other limitations. .

LBO 8