The Value of Value Chain Analysis in Transforming Your Business

N2Growth Blog

I have a different take on value chain analysis. Most think of it as positioning a business within its ecosystem.

StrategyDriven Editorial Perspective – Good Intentions, Bad Results: Learning from the Panic of 1826

Strategy Driven

For what lead Life & Fire’s directors to commit fraud in the first place was in part driven by a desire (so they claimed) to extend credit to high-risk borrowers being ignored by traditional banks. This combination of high yield and seemingly low risk sparked a credit boom.

10 Ways to be a Better Team Player :: Women on Business

Women on Business

Categories : Communications , Ethics , Leadership , decision-making Echo Garrett is the National Practice Manager for KPMGs Financial Credit Risk practice and a Co-Founder of "Her Voice", a National Womens Organization that brings women together for local support and charitable opportunities.

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Auditing Algorithms for Bias

Harvard Business Review

” For example, if a person was deemed a low credit risk, granted a loan, and then defaulted on that loan that would be a false positive. The model falsely predicted that the person had low credit risk. Laurence Dutton/Getty Images.

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A Practical Approach to Reading Signals in Data

Harvard Business Review

Prototypically, a bank officer would make credit decisions for applicants based on the applicants' "character" — which church they attended, which school their kids were in, etc. The standardized score massively increased credit availability and thus lowered the cost of borrowing.

Just Using Big Data Isn’t Enough Anymore

Harvard Business Review

Big Data has quickly become an established fact for Fortune 1000 firms — such is the conclusion of a Big Data executive survey that my firm has conducted for the past four years.

A Dedicated Team of Problem Solvers Can Help Big Companies Act Like Lean Startups

Harvard Business Review

We have a lot of newer businesses that come to us for credit and we need to do due diligence on them. So it’s an incredibly labor intensive process for us to verify whether they are a good credit risk.” Most companies try to avoid problems.

How P&G and American Express Are Approaching AI

Harvard Business Review

Ash Gupta is President of Global Credit Risk and Information Management at American Express, and Guy Peri is Chief Data Officer and Vice President of Information Technology at P&G. For example, American Express is focusing efforts on credit fraud reduction, which delivers both customer value and internal business benefits.

What Macroeconomists Are Missing

Harvard Business Review

Interestingly, though, the very first paper he assigned me, " Credit and Banking in a DSGE Model of the Euro Area " was itself pretty dismissive of pre-financial-crisis macroeconomics: Despite its importance for policy-making, most quantitative macromodels employed in academia and policy institutions until recently contained only a very primitive treatment of the interaction between financial and credit markets, on the one hand, and the rest of the economy, on the other.

Use Data to Fix the Small Business Lending Gap

Harvard Business Review

Access to credit is a key constraint for entrepreneurs. And limited credit is in part caused by the difficulty of predicting which small businesses will and won’t succeed. Today, community banks are being consolidated and larger banks are relying more and more on data-driven credit scoring to make small business loans—if they are making them at all. Since the crisis, banks have reconsidered their overreliance on personal credit scores in small business lending.

The Downside of the Fed’s Increasingly Complicated Expectations Game

Harvard Business Review

Greenspan again: “I think the evidence probably is conclusive, that a necessary and sufficient condition for a bubble is a prolonged period of economic stability, stable prices, and therefore low risk spreads, credit risk spreads.”. Yesterday, the Federal Reserve announced that it’s kind of sort of about to start ever-so-timidly pulling back on the massive monetary stimulus it’s been pouring out since the financial crisis. Then, stock prices around the world jumped.

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For Successful Collaboration, Think Outside the Box

Harvard Business Review

He explained that his organization was highly functionalized with separate units for sales, trading, investing, portfolio management, credit, risk, and operations; some of which reported to him and some to the corporate center. The head of a large financial services division recently asked me how to encourage his people to take more initiative.

Predictive Medicine Depends on Analytics

Harvard Business Review

Think of the colleges that are increasingly able to identify students at risk of dropping out and intervene before they do. Or lenders’ enhanced abilities to gauge credit risk. Predictive tools are helping providers — both doctors’ groups and hospitals — assess patients’ risk of contracting a whole host of diseases and conditions. They’re also sharing risk.

What Every Manager Should Know About Machine Learning

Harvard Business Review

Rating the credit risk of loan applicants. Perhaps you heard recently about a new algorithm that can drive a car ? Or invent a recipe? Or scan a picture and find your face in a crowd?

What Alan Greenspan Has Learned Since 2008

Harvard Business Review

In the fall he came out with a book setting out his new and improved worldview, The Map and the Territory: Risk, Human Nature, and the Future of Forecasting. I said, “Let’s remember that history has not dealt kindly with very prolonged low [risk] spreads.” It’s clear that he thinks he’s gotten both too much credit and too much blame, but he has also developed an interesting theory – that good central bank performance actually breeds bubbles and crashes.