Exploring the sample credit risk application

3 Tasks

20 mins

Pega Credit Risk Decisioning

Pega Infinity

Visible to: All users

Beginner

Pega Credit Risk Decisioning

English

Scenario

As a new Credit Risk Manager, you are tasked with understanding the Decision Management portal and the sample 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. You want to explore this strategy and familiarize yourself with its components and logic.

The following table provides the credentials you need to complete the challenge:

Role	User name	Password
Credit Risk Manager	CreditRiskManager	rules

Your assignment consists of the following tasks:

Task 1: Explore the Credit Risk application

As a Credit Risk Manager, initiate a new credit risk estimation case, explore the outcomes for different customers, and understand how their attributes influence the decisions generated by the strategy.

Task 2: Explore the Credit risk decision strategy

Familiarize yourself with the Loan Origination Decision Consumer decision strategy and the Offer Calculation Consumer sub-strategy. Inspect the Check Product By Region Allowance decision table, and the Application Scorecard scorecard model components.

Task 3: Run the Credit Risk decision strategy in batch mode

Run the Loan Origination Decision Consumer decision strategy 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.

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Challenge Walkthrough

Detailed Tasks

1 Explore the Credit Risk application

1. On the challenge 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 corner, click the user icon, and then click Switch Portal > Credit Risk portal.
   
4. Agree to switch the display to show the Credit Risk portal.
5. In the navigation pane of the Credit Risk portal, click Create > Sample App to create a new credit risk estimation Case.
   
6. In the Credit Customer section, in the CustomerID field, enter or select Customer11.
7. In the Credit Risk Results section, review the following information:
   1. The Final Decision for the customer.
   2. The requested or alternative Product offer.
   3. The Segment in which the customer is placed.
   4. The Internal Score.
   5. The Credit Bureau Score.
      Note: The application approves the StudentLoan requested by Customer11.

8. In the Credit Customer section, in the Num of Credit History Inquiries 1M field, enter 13, and then in the Credit Risk Results section, click ReDecision.
   Note: The application declines the StudentLoan requested by Customer11 as the result of a Credit History Inquiries Check.

9. In the Credit Customer section, in the CustomerID field, enter or select Customer104, and then click ReDecision.
   Note: The application declines the ConsumerLoan requested by Customer104 but suggests investigating an alternative offer.

10. In the Region Code field, enter 001, and then click ReDecision.
    Note: The application approves the ConsumerLoan requested by Customer104 if he lives in Region 001.

2 Explore the Credit Risk decision strategy

1. In the upper-right corner, click the user icon, and then click Switch Portal > Decision Manager Portal.
   
2. Agree to switch the display to show the Decision Manager portal.
3. In the My Worklist section, click Credit risk strategy to open the change request.
4. In the Scope of changes section, in the Name column, click Loan Origination Decision Consumer to open the strategy.
   
5. Double-click the canvas to center the view.
   Note: This strategy processes the customer information and calculates the Final Result.

6. On the right, expand the Test run pane, and then configure the settings:
   
   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.
7. Click Save & Run to run the strategy, and then observe the results:
   1. On the canvas, click the Cash Loans component.
      Note: In the Test run pane, notice that StudentLoan is the selected product for this customer.
   2. Click the Final Decision component.
      Note: In the Test run pane, notice that the Final Decision result is APPROVE.
   3. Click the Score Segment component.
      Note: In the Test run pane, notice that the Scoring Segment result is YELLOW.

8. Right-click the Score Segment component, and then select Properties to open the External strategy properties window.
9. In the External strategy properties window, next to the External Strategy field, click the Open icon to open the Offer Calculation Consumer strategy.
10. Right-click the Check Product Eligibility component, and then select Properties to open the Decision table properties window.
    
    Note: The Decision table component maps the pxSegment property to the result of the decision table.

11. In the Decision table properties window, next to the Decision table field, click the Open icon to open the ProductByRegionAllowance decision table.
    
    Note: The decision table checks the availability of the loan offers in a specific region. For example, if a customer from Region 001 requests a CustomerLoanSpecialOffer, the decision table returns false as the offer is not available in this region.

12. Close the decision table, and then close the Decision table properties window to return to the strategy canvas.
13. Right-click the Application Scorecard component, and then select Properties to open the Scorecard model properties window.
    Note: The Scorecard model component maps the pxSegment property to the result of the scorecard.

14. In the Scorecard model properties window, next to the Scorecard model field, click the Open icon to open the Application Scorecard configuration page.
    
    Note: Notice the Combiner function, Predictor expression, Condition, and Score fields. This scorecard model gives high scores to older, married customers.

15. Click the Results tab and observe the score range mapping.
    
16. In the upper-right corner, close the scorecard configuration page, and then close the Scorecard model properties window to return to the canvas.
17. Close the Offer Calculation Consumer strategy to return to the Loan Origination Decision Consumer strategy.

3 Run the Credit Risk decision strategy in batch mode

1. In the Test run panel, click the Batch tab.
2. Click Settings to configure the batch test run:
   1. In the Batch settings window, ensure that A new simulation is the active selection.
   2. In the Input data field, enter or select Customers in database.
3. Click Run to begin the batch test run.
4. After the batch test run is completed, click the Browse tab.
5. In the Group field, select Cash Loans to observe the distribution of the offers.
   

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This Challenge is to practice what you learned in the following Module:

• Pega Credit Risk Decisioning Overview v2

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Available in the following mission:

• Credit Risk Decisioning v2