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Exploring the sample credit risk application

3 Tasks

20 mins

Pega Infinity
Visible to: All users
Beginner Pega Infinity English

Scenario

As a new Credit Risk Manager, you are tasked with understanding the Decision Management portal and the current Credit Risk Decision Strategy. This strategy uses a combination of customer data, scorecard models, decision tables and analytics tools to determine the Credit Risk of each customer. Your goal is to explore this strategy and familiarize with its components and logic.

Use the following credentials to log in to the exercise system:

Role User name Password
Credit Risk Manager CreditRiskManager rules

Your assignment consists of the following tasks:

Task 1: Explore the Credit Risk portal

As a Credit Risk Manager, log into the Decision Management Portal and navigate to the Credit Risk portal. You will then need to create a new credit risk estimation case, explore the outcomes for two different types of customers and understand how their attributes influence the decisions generated by the strategy.

Task 2: Explore the Credit Risk Decision Strategy

Familiarize with the Credit Risk Decision Strategy and explore the following components: Loan Origination Decision Consumer strategy, Offer Calculation Consumer strategy, Check Product By Region Allowance Decision Table, and the Application Scorecard.

Task 3: Run the Credit Risk Decision Strategy in batch mode

Run the Credit Risk Decision Strategy for multiple propositions in batch mode and observe the results.

 

You must initiate your own Pega instance to complete this Challenge.

Initialization may take up to 5 minutes so please be patient.

Challenge Walkthrough

Detailed Tasks

1 Explore the Credit Risk portal

  1. On the exercise system landing page, click Launch Pega Infinity™ to log in to the Decision Management portal.
  2. Log in as a Credit Risk Manager:
    1. In the User name field, enter CreditRiskManager.
    2. In the Password field, enter rules.
  3. In the upper-right, click the Administrator user icon, and click Switch Portal > Credit Risk portal. Confirm the Switch the display message.
    CR portal accress
  4. On Credit Risk portal home page, hover over the pane on the left and click Create > Sample App to create a new credit risk estimation case.
    sample app
  5. In the Review Step section, note the Credit Customer attribute fields that influence the decision making.
    review step
  6. In the Review Step section, in the CustomerID field, enter Customer11, or press the down arrow and select Customer11 from the list.
  7. In the Credit Risk Results section, notice the following information:
    1. Final Decision for the customer
    2. Product that the customer applies for.
    3. Segment that the customer is placed in.
    4. Internal Score
    5. Credit Bureau Score
      Note: Customer11 is APPROVED for the Requested Amount of 25,467 and StudentLoan product.
  1. In the Credit Customer section, in the Num of Credit History Inquiries 1M field, replace 3 with 13 and click ReDecision.
    review step 2
  2. Repeat step 6 for Customer104 and observe the results.
    Note: Final Decision for this customer is INVESTIGATE and a suggested product ConsumerLoanSpecialOffer is proposed instead of the requested offer.
  1. In Region Code field, replace 002 with 001, click ReDecision and observe the results.
    Note: Due to the region change, the Fnal Decision for the requested product shows as APPROVE.

2 Explore the Credit Risk decision strategy

  1. In the upper-right, click the Administrator icon and select Switch Portal > Decision Manager Portal. Confirm the Switch the display message.
    switch to decision manager portal
  2. In the My Worklist section, in the Change Request column, click Continuous Development to open the current Change Request.
    change request launch
  3. In the Scope of changes section, in the Name column, click the Loan Origination Decision Consumer strategy to open it.
    loan strategy launch
  4. Double click the white canvas to center the view.
  5. Explore the Loan Origination Decision Consumer strategy.
    loan strategy
    Note: This strategy processes the Credit Customer information shown in Task 1 and provides the Final Result.
  1. On the right, expand the Test run pane.
    test run 1
    1. In the Settings section, Select Data set to run the strategy test on a Data Set.
    2. In the Data set field, enter or select CustomersInDatabase.
    3. In the CustomerID field, enter Customer11.
    4. Click Save & Run to run the strategy and observe the results.
      test run 2
    5. On the canvas, click the Cash Loans Filter component.
      strategy 1
    6. In the Test run panel, in the Results in Loan Origination Decision Consumer section, notice that the StudentLoan is the selected product for this customer.
    7. On the canvas, click the Final Decision Set Property component.
      strategy 2
    8. In the Test run panel, in the Results in Loan Origination Decision Consumer section, notice that the Final Decision result is APPROVE.
    9. On the canvas, click the Score Segment Sub strategy component.
      strategy 3
    10. In the Test run panel, in the Results in Loan Origination Decision Consumer section, notice that the Scoring Segment result is YELLOW.
      Note: Credit Risk check results for Customer11 shown in Task 1 are calculated by the Loan Origination Decision Consumer strategy.
  1. On the canvas, right-click the Score Segment Sub Strategy component and select Properties to open the External strategy properties window.
    properties 1
    1. In the External strategy properties window, next to the External Strategy field, click the Open icon to open the OfferCalculationConsumer strategy.
      properties 2
  2. Explore the Offer Calculation Consumer strategy.
    1. On the canvas, right-click the Check Product Eligibility Decision Table component and select Properties to open the Decision table properties window.
      strategy 4
    2. In the Decision table properties window, next to the Decision Table field, click the Open icon to open the ProductByRegionAllowance Decision Table.
      properties 3
  3. Explore the Product By Region Allowance Decision Table.
    table 1
    Note: A Decision Table is a rule type that tests a series of property values to match conditions, so that your application performs a specific action under conditions that you define.In this example, some products may not be allowed in some regions. To meet such business requirement, you can use a Decision Table that returns a result based on a Region Code. Changing the Region Code in Task 1 for Customer104 resulted in a different action result in the Decision Table and thus in a different Credit Risk check Final Decision.
  1. In the upper-right, click the X to close the Decision Table.
  2. Close the Decision table properties window and return to the strategy canvas.
  3. On the canvas, right-click the Application Scorecard Scorecard Model component and select Properties to open the Scorecard model properties window.
    properties 5
  4. In the Scorecard model properties window, next to the Scorecard model field, click the Open icon to open the ApplicationScorecard configuration page.
    scorecard prop 1
  5. Explore the Application Scorecard Scorecard.
    Note: A scorecard is a predictive model that helps in decision-making by scoring and segmenting data based on certain conditions and defined cutoff values.
  1. Notice the combiner function, predictor expression, condition and score fields.
    scorecard table 1
    1. Navigate to the Results tab and observe the score range mapping.
      Note: Scorecard result is calculated based on a set of conditions and a combiner function, such as summing up scores attributed to each customer property. The output of a scorecard is the raw score and a segment, which is obtained by defining a set of cut-off values that create a set of score ranges.

3 Run the Credit Risk decision strategy in batch mode

  1. In the upper-right, click the X to close the scorecard configuration page.
  2. Close the Scorecard model properties window and return to the canvas.
  3. . In the upper-right, click the X to close the Offer Calculation Consumer strategy.
  4. Close the External strategy properties window and return to the Loan Origination Consumer strategy canvas.
  5. In the Test run panel, click the Batch tab.
  6. Click the Settings button to configure the batch test run.
    batch test settings
    1. In the Batch settings window, make sure that A new simulation is selected.
    2. In the Input data field, enter or select Customers in database.
    3. Click Run to begin the batch test run.
      batch settings 2
  7. After the batch test run is completed, observe the results.
    highest 10
  8. Navigate to the Lowest10 tab.
    lowest 10
  9. Navigate to the Browse tab.
    browse


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