New Experian report outlines key credit risk management strategies for the industry

News release

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New Experian report outlines key credit risk management strategies for the industry

Nottingham, UK, 26 November 2008 - Experian, the global information services company, today published a new report providing expert recommendations for credit risk management in today's turbulent economic climate.

Containing emerging market insights and suggested strategies from the company's industry experts, Experian's Credit Risk Dossier sets out the new considerations that will increasingly govern how lenders approach risk management.  At the heart of the report lies the importance of optimising risk management procedures across the entire credit lifecycle – from customer acquisition and management, through to collections and recoveries.

Phil Cotter, Managing Director of Experian's Credit Services division, comments:

"In today's economic climate, business agility is critical in the wake of unprecedented market events, weakened consumer purchasing power and growing indebtedness.   Our report distils the advice we are giving to our clients to help them adapt quickly to market conditions and optimise their risk-based approach to lending by using data and analytics to anticipate changes in their customer portfolios."

Published today at Experian's Credit Risk Summit in London, attended by 100 of the industry's senior credit risk professionals, the report's key themes include:

Adapting credit strategies for the current environment and beyond: why the application of risk management technology is more important than ever and the steps lenders should take to monitor and improve the performance of their scoring models.

• Tackling the changing fraud threat:  having recorded a 29 per cent increase in the number of attempted mortgage frauds, Experian outlines the key measures lenders need to adopt to combat a growing problem, and one that is not just confined to mortgage applications.
• Capturing good business from existing customers:  how to identify the most profitable customers, in the current and future economic conditions, and the importance of focussing on customer engagement to drive retained profitability instead of simply retention rates.
• Acting quickly and appropriately on bad business:  why poor debt collection can no longer be camouflaged by increases in new business and how more targeted, customer specific actions will deliver significant benefits in retention, liquidity and impairment charges.
• Driving competitive advantage through compliance: why achieving the highest levels of compliance is not only good business practice, but will become a commercial differentiator in the post-crunch economy.
  
  

To download a copy of the Experian Credit Risk Dossier please visit http://www.experian.co.uk/creditriskdossier/